New Tax Reporting ($600 Threshold per year) and Consignments 21 21

[Mr. Zipper]

On 5/11/2022 at 6:59 PM, WernerVonDoom said:

That's not the point. They are putting screw after screw after screw to the lower/middle class while the rich is getting off scot-free.  I'm sure that the gov grabbing 30% of grandma's $600 sofa is the best use of the IRS's time.

Exactly. I already pay a ton of taxes on my day job and file a Schedule C for my LLC Business. I pay my fair share. Now I have to deal with headaches if I sell a small amount of collectibles I purchased 20 years ago and any other miscellaneous used items from my home. Very few people have kept proper records or receipts from every item they bought over the years. Gimme a break. It's a money grab to pay for all the ridiculous covid giveaways.

[shadroch]

On 5/11/2022 at 4:18 PM, Mr. Zipper said:

Exactly. I already pay a ton of taxes on my day job and file a Schedule C for my LLC Business. I pay my fair share. Now I have to deal with headaches if I sell a small amount of collectibles I purchased 20 years ago and any other miscellaneous used items from my home. Very few people have kept proper records or receipts from every item they bought over the years. Gimme a break. It's a money grab to pay for all the ridiculous covid giveaways.

Thats not how it works but I suppose you will find that out eventually.  Why is it it you have no problem paying taxes on your day job but not your night one?  Would you go to HR at your job and let them know you'd paid your share so stop taking out any more taxes? 

If it helps, think of it as a clawback on the stimulus checks.

[Beige]

I'm honestly NOT surprised it took this long for ebay to work out this would hit them hard next financial year.

 

Once the IRS get completely gridlocked with millions of extra tax queries - this will hopefully go.

 

Hasn't happened in Australia yet - but monthly reports are now being issued - all ID and details taken for all accounts, so its coming.

 

Currently no tax payable on anything over 10 yrs old or BOUGHT for under $600 and then resold for more in the comic sector.

 

We'd be in the same boat as you guys - no-one at a garage sale is going to be handing out receipts to help the IRS and screw themselves.

 

 

[Mr. Zipper]

On 5/11/2022 at 7:28 PM, shadroch said:

Thats not how it works but I suppose you will find that out eventually.  Why is it it you have no problem paying taxes on your day job but not your night one?  Would you go to HR at your job and let them know you'd paid your share so stop taking out any more taxes? 

If it helps, think of it as a clawback on the stimulus checks.

Bill - The difference is selling a handful of collectibles and used items a year is not my "night job." I am not a dealer. To me it's no different than trying to tax a garage sale. Petty and absurd overreach. The previous $20,000 threshold was a fair level that distinguished between occasional collector sales and dealers/resellers. Maybe even if they lowered it to $10,000. But to go from $20,000 to $600 is absurd. 

[zuckuss2003]

On 5/11/2022 at 7:38 PM, Mr. Zipper said:

Bill - The difference is selling a handful of collectibles and used items a year is not my "night job." I am not a dealer. To me it's no different than trying to tax a garage sale. Petty and absurd overreach. The previous $20,000 threshold was a fair level that distinguished between occasional collector sales and dealers/resellers. Maybe even if they lowered it to $10,000. But to go from $20,000 to $600 is absurd. 

The thing is the tax level did not get lowered, you were always supposed to pay taxes on your income from a sale. This is not new. What's new is eBay now has to report it at $600 instead of the higher 20k,so it holds them and you just a little more accountable for what's always been the rule, pay taxes on income.

Edited May 12, 2022 by zuckuss2003

[shadroch]

On 5/11/2022 at 4:38 PM, Mr. Zipper said:

Bill - The difference is selling a handful of collectibles and used items a year is not my "night job." I am not a dealer. To me it's no different than trying to tax a garage sale. Petty and absurd overreach. The previous $20,000 threshold was a fair level that distinguished between occasional collector sales and dealers/resellers. Maybe even if they lowered it to $10,000. But to go from $20,000 to $600 is absurd. 

I"d have phased it in over a few years, and won't be surprised if some adjustments are made.  I just don't understand why people are so opposed to paying taxes.  

[WernerVonDoom]

On 5/11/2022 at 5:19 PM, shadroch said:

I"d have phased it in over a few years, and won't be surprised if some adjustments are made.  I just don't understand why people are so opposed to paying taxes.  

They recently gave over a trillion dollars in tax reductions to the rich and corporations. Are you not opposed to them paying for it by enforcement of taxes on garage sales?

Edited May 12, 2022 by WernerVonDoom

[lizards2]

On 5/11/2022 at 5:19 PM, shadroch said:

I"d have phased it in over a few years, and won't be surprised if some adjustments are made.  I just don't understand why people are so opposed to paying taxes.  

Because of what the insufficiently_thoughtful_persons in WADC spend it on.

[Shrevvy]

On 5/11/2022 at 4:53 PM, shadroch said:

My goodness. Asking people to step up and pay their taxes.  What has happened to this country?

It is not about paying taxes. It is about forcing people to pay taxes that they do not owe. In the eBay email, they make reference to a bike purchased for $1500 and sold for $800. No tax is due (can't even take a write-off for the loss), but a 1099 will now be issued. Prove your innocence. You miss this point over and over.

The government used to trust its citizens. What happened to this country? 

[theCapraAegagrus]

On 5/11/2022 at 8:19 PM, shadroch said:

I just don't understand why people are so opposed to paying taxes.  

PM me if you're actually interested in learning why.

[zuckuss2003]

On 5/12/2022 at 6:39 AM, Shrevvy said:

It is not about paying taxes. It is about forcing people to pay taxes that they do not owe. In the eBay email, they make reference to a bike purchased for $1500 and sold for $800. No tax is due (can't even take a write-off for the loss), but a 1099 will now be issued. Prove your innocence. You miss this point over and over.

The government used to trust its citizens. What happened to this country? 

This is so weird...why would you say the government doesn't trust its citizens. So you get this 1099, and you yourself know you did not make money on that sale. You know what you do...you don't pay taxes on that sale...there is no "proving your innocence" needed. What do you mean by that?

Edited May 12, 2022 by zuckuss2003

[Number 6]

On 5/12/2022 at 5:34 AM, zuckuss2003 said:

This is so weird...why would you say the government doesn't trust its citizens. So you get this 1099, and you yourself know you did not make money on that sale. You know what you do...you don't pay taxes on that sale...there is no "proving your innocence" needed. What do you mean by that?

Because “you know you did” doesn’t count when you get audited. 
 

I know most are probably comfortable rolling the dice that they won’t get audited.  But some aren’t comfortable making that gamble and, contrary to what’s been asserted, are willing to pay their “fair share”.  

Edited May 12, 2022 by Number 6

[Shrevvy]

On 5/12/2022 at 8:34 AM, zuckuss2003 said:

This is so weird...why would you say the government doesn't trust its citizens. So you get this 1099, and you yourself know you did not make money on that sale. You know what you do...you don't pay taxes on that sale...there is no "proving your innocence" needed. What do you mean by that?

The act of issuing a 1099 is stating you have income. It is up to you to prove that you do not. Hence, "prove your innocence" as you have be accused of having income when you in fact do not. It has been said before, many will pay taxes that are not due because of ignorance or caution (since people do like the word fear in this context). 

The government trust comment was a facetious response to shad's "what happened to this country" comment. I thought it was funny, but it apparently missed its mark. 

Edited May 12, 2022 by Shrevvy

[lostboys]

I dont think Ebay is on our side...theyve probably worked this all out with the govt. Adding your name to that Ebay petition is most likely nothing more than admitting that youve been made aware.

A trick.

[Bird]

IBTL

you people were warned about tax talk

mikey is busy with the contest but when dad gets home you are all in trouble

[Ryan.]

On 5/12/2022 at 8:34 AM, zuckuss2003 said:

This is so weird...why would you say the government doesn't trust its citizens. So you get this 1099, and you yourself know you did not make money on that sale. You know what you do...you don't pay taxes on that sale...there is no "proving your innocence" needed. What do you mean by that?

When you ignore that 1099 you received because you know you don't owe taxes on the stated amount, the IRS helpfully sends you a bill 2-3 years later for the full taxable amount* of the applicable 1099, thus necessitating you to prove your innocence.

 

*Plus interest!

Edited May 12, 2022 by Ryan.

[manetteska]

On 3/10/2021 at 4:12 PM, shadroch said:

I don't do my own taxes.  While I try and stay on to of changes that affect me, I have had my taxes down by pros for decades, except for a few years when I was voluntarily unemployed. 

I'm going to make a wild assed guess here, but I think most people will ignore the notices Ebay sends out, and the IRS will audit maybe 1% of them.

Back in the 1980s, I was called in by the NY State tax people. I'd failed to file sales tax reports for three straight quarters and I got a bill for several thousand dollars.  A face to face got them to accept $250, including $75 in penalties.

In the mid-1990s, I was invited to a meeting with an IRS agent concerning some irregularities. When I showed up, the meeting was canceled as I did not have my SS card with me.  The agent gave me a number to call to reschedule but I gave up after a few busy signals. About six months later I got a letter saying the investigation was complete, I owed nothing and if I was unhappy to call the same number I'd gotten months before. 

 

 

 

 

 

On 5/11/2022 at 7:19 PM, shadroch said:

I"d have phased it in over a few years, and won't be surprised if some adjustments are made.  I just don't understand why people are so opposed to paying taxes.  

Seems like you do...

[optimal_max]

On 5/11/2022 at 4:53 PM, shadroch said:

My goodness. Asking people to step up and pay their taxes.  What has happened to this country?

We already pay about 5,000 other taxes.  Income tax, phone tax, sales tax, environmental tax, death tax, toll taxes, social security tax, FICA tax, Medicaid tax, and many many more.

[zuckuss2003]

On 5/12/2022 at 10:26 AM, Ryan. said:

When you ignore that 1099 you received because you know you don't owe taxes on the stated amount, the IRS helpfully sends you a bill 2-3 years later for the full taxable amount* of the applicable 1099, thus necessitating you to prove your innocence.

 

*Plus interest!

I certainly wouldn't ignore it, I am saying you don't owe if you took a loss.

[Stronguy]

On 5/12/2022 at 9:26 AM, Ryan. said:

*Plus interest!

*Plus penalties!

My folks underpaid their quarterly payroll taxes by $2 one time.  Over a year later they were sent a bill from the IRS for something like $50... $2 for the underpayment, $1 for interest (50%.. WTF!)... $47 in penalties.