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Alice's avatar

Shortly after Biden got into office (and they ‘won’ the two GA senate seats) they passed the American Rescue Plan - March 2021 (don’t you love the name!) and in it was the plan to introduce the 1099K for payment processors, Ebay, Etsy etc. for transactions totaling $600 effectively hurting lower/middle income individuals that have small businesses or sell things personally. Now they have their army to harass them and make sure they pay their taxes. Meanwhile most have no idea this was implemented and are going to be in for big shock when they do their taxes next year.

Section 9674(a) of the ARPA changes the de minimis threshold for Form 1099-K reporting for TPSOs. (No de minimis threshold applies with respect to payment card transactions.) Currently, the de minimis rule under section 6050W(e) provides that a TPSO is required to report on Form 1099-K with respect to third party network transactions of any participating payee only if (1) the amount that would otherwise be reported exceeds $20,000, and (2) the aggregate number of transactions exceeds 200. The new law replaces this two-step de minimis standard with a single $600 reporting threshold effective for 2022. Accordingly, a single transaction for more than $600 settled through a TPSO will now be reportable as will multiple transactions that total more than $600.

https://www.bloomberg.com/news/articles/2022-06-08/ebay-sellers-face-1099-k-tax-headache-under-new-irs-rule

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baboon's avatar

IIRC, they also removed the option to move funds from eBay to PayPal in the UK. If you didn't have a bank account, you were SOOL.

No doubt the net is tightening. A good way around this right now is to set up a Fintec account with a company that operates multinationally and has no ties to where you live. They allow you to participate in the banking system but have no ties to your local tax agency. Some are honeytraps (like Revolut). SWIM (someone who isn't me) hasn't paid taxes for fifteen years. Paying taxes is for suckers. Getting enraged that certain people don't pay taxes means you are an NPC.

SWIM has learned to live outside of their system for a long time. He is the ultimate model of how you don't comply.

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