PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

Came home from work to find a PAYPAL message that the IRS requires PAYPAL to report all sales over $600. They are asking that I register a Tax ID, so that a 1099 can be sent? The impact that this will have on the boards classified sales is to be determined! Many of us are not professional parts vendors.

I will have to take the parts that I bought over many years to Charlotte Auto Fair and Moultrie Auto Fair! I have bought most of my parts through 40 years of
working as a taxpayer for the enjoyment of working on projects!

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

wow.

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

the same thing happened to me on facebook also and pay pal so whats up with this

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

Part of proposed American Families Plan . . .

https://www.snopes.com/fact-check/bi...00-dollar-irs/

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

What a head ache.
First it was add sales tax to everything on line and even at Nebraska swap meets. Now this and pay income tax at 25% to Federal and 7% to Nebraska for me.

Now I'm hearing everything including cash withdraws over $600 from your bank account also gets reported to the IRS.

Now they want eBay, Paypal, and Facebook to report cash transfers by tax id on individual occasional sellers.
Thats a monumental s... load of receipts and record keeping on every purchased and now sold part that never was kept on a lifetime of purchases made up to 50 years ago for me.
Guess you just quit selling anything and a stepped up current value still may be available to your inheriting kids at your estate sale. Who can afford to wade through a tax return each year to itemize all your expenses and gains over a lifetime.

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

I guess you have to sell everything to "best view" !

What's next ?

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

This is what I don't get, if it is part of a plan that is only PROPOSED, why are these organizations already falling in line with the IRS? More importantly, why does the IRS feel they can even ask for something that isn't into law yet?

It seems our government and these organizations are in lock step with one another. I'm not conspiracy theory nut but it sure makes my tin foil hat tingle.

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

lmao

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

I’d recommend keeping every receipt for everything. If no receipt, keep a handwritten log what you paid for it. Because if the IRS puts you in a position where you have to report gross profit off that 1099 income, you’ll need that cost basis to prove you only made $50 or whatever on that $600 item you sold.

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

This sucks for this hobby because ppl will simply choose not so sell anymore because of the hassle and scrap valuable parts instead. I'm not sure how this will work in Canada but will soon probably be the same.

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

It definitely sucks. Time to go back to how swap meets and parts sales were done before the internet became mainstream, I guess. Although, I'm no expert on that one since I've been around less than that :lol:

For the person who sells stuff occasionally and not for the purpose of a business, this will really hurt. For someone who sells more for a business, or business minded, this is more annoying than anything else.

If you're selling enough on the side to have a side business, keep a good time log of your activities related to buying and selling (swap meets, searching for parts, combing through junkyards, etc.). If you hit 500 hours a year, you're considered to be materially participating in that business, therefore you can take any losses you have that year against your regular form of income. If you aren't spending 500+ hours a year, it's considered a passive activity, so you would only have passive losses or gains. Passive losses can only be taken against passive income

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

Stop putting your cash in the bank and install a wall safe.

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

I got that same PayPal notice a few weeks back and posted on the forum about it. Someone said that the $600 is the lower threshold and only means you need to give your tax ID. Supposedly the figure where you would be actually taxed is much higher. Go to your PayPal account and log in. Then check what they say about it - I read mine, but can't remember detail for detail what the stipulations were.
Actually the idea of the safe sounds pretty good to me. Jay

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

Ever notice how Marketplace, OfferUp, etc. ask “Did you sell this?” Or “mark this sold?” That way you can rate the buyer…it’s also how they can keep track of what you sold and for how much.

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

The banks will be reporting all $600+ deposits, as well.

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

I'll probably be withdrawing and depositing $601 daily just to cause problems ;-)

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

Are you sure you are reading it correctly? The Snopes article says that banks have to report transactions over 600 as a whole but not individual information. The IRS has always had the power to probe into your personal baking info.

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

Ive been ahead with the cash as some of you know .sadly the communist party has taken over and I saw it coming I’ve sold almost everything I have and looking for a new country, but no other country wants us , we have lost our freedom

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

Just read this today

The Biden administration on Tuesday backed down on a controversial proposal to direct the IRS to collect additional data on every bank account that sees more than $600 in annual transactions, after widespread criticism from ( I will not share the rest of this to stay away from getting political )

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

Looks Biden is backing off the $ 600.00 figure and moving to $ 10,000.I believe as an annual threshold. $ 10,000 transactions have been reportable for years. None of these include payroll deposits.

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

They probably came to the realization of the huge mountain of paper work involved and the amount of employees it would take to sift through that mess. It would be millions of transactions a day between business and personal accounts.

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

That 10k was in a single transaction though, not annual, plus they are talking "transactions" not simply deposits. So if you transferred money from a checking account into savings? or made an investment? transferred your 401K? these are all transactions from "financial institutions"
Moving money around is not income, but they will try to twist it into that at some point.

Their justification for this is that they are missing out on unreported income, but it's the government so they miss the point of the cost of expanding the IRS to collect this money. It will expand things to the point of costing more to collect this shortage than it is worth. Then we are stuck with a bigger/costlier entity that never goes away and continues to consume tax dollars.

Are these companies complying with things not yet established to soften the blow? Testing the waters?

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

They need start collecting to make up for all the free money they are giving out :lol:

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

It's all just a "reverse Robinhood" Take from the "poor" and further enrich the coffers of the politicians . Have you ever seen a poor politician? They keep approving all these different programs and they haven't even spent the money from previously approved programs or it gets redirected to another "cause" I think what everyone should be asking is where did all that money go ? there's never an accounting of whats been spent and who has it now . We're all just the rats on the wheel . :smoke:

Next cash will be totally replaced by cards and then it will be a barcode on you .

Re: PAYPAL IRS Requires Taxpayer ID for Sales over $600
 

Maybe it is a way to get the rich to pay their fair share of taxes in stead of hiding their assets like the Pandora paper revealed.

https://www.nytimes.com/2021/10/04/w...ra-papers.html