IRS Reporting

[triplex]

If I am using mine and my mum account and get like 9000$/account/year, in Paypal then we withdraw to Cashapp , will the IRS just send us letters? or we will find about it only in case of an "audit" or "extended audit" , or they will just tax everyone 24% now ?

how it will work now?

[wallstreetjimmy]

Originally Posted by triplex

If I am using mine and my mum account and get like 9000$/account/year, in Paypal then we withdraw to Cashapp , will the IRS just send us letters? or we will find about it only in case of an "audit" or "extended audit" , or they will just tax everyone 24% now ?

how it will work now?

I think they held of on 1099 misc this year? Maybe someone can tell us...also if last year's 1099 matter as well?

[agent006140]

IRS held off on $600,but not $9k
she and her mom will get 1099K from Paypal or MP,one copy goes to IRS,and it will be added to her account

[agent006140]

It goes by SSN,your mom and you will each get a 1099K from whoever processes your sales-PAYPAL/MP.
They will also send a copy to IRS,and IRS computer will post the amount to your SSN account.
So if they find out you did not report this income,it could trigger an audit.

[wallstreetjimmy]

Originally Posted by agent006140

It goes by SSN,your mom and you will each get a 1099K from whoever processes your sales-PAYPAL/MP.
They will also send a copy to IRS,and IRS computer will post the amount to your SSN account.
So if they find out you did not report this income,it could trigger an audit.

Yea but like Trump you just say the items cost more than your ebay 1099 and bam irs pays you....😈😈😈😈

[triplex]

Originally Posted by agent006140

It goes by SSN,your mom and you will each get a 1099K from whoever processes your sales-PAYPAL/MP.
They will also send a copy to IRS,and IRS computer will post the amount to your SSN account.
So if they find out you did not report this income,it could trigger an audit.

I have an US SSN , but I am not living in US for a long time. Please explain me how tax works there as i never paid taxes there. So , they will care what PayPal told them ony in case of an audit? i can go and work there, like a normal job, and never hear about what i did on PayPal ?

[triplex]

PayPal will send the 1099 form in mail? or via my email? or in my account?

[vettefever17]

The 600 rule has been pushed back 1 year over confusion but here is the following:

A lot of confusion here. Is the money from sales? Or is it personal family money being transferred?

If it is being invoiced for a sale, of course, it will be seen as income. If it is simply a family transfer, it should not be taxed as income. But, I would leave a note of what it was for. (rent, dinner, clothes, bills, etc)

IF it is for income, then the invoice would need to be reported and filed for tax on a 1099-K.

I would highly recommend not trying to cheat the system through just the "Friends and Family" option. Be honest, be transparent, and you'll never have to worry about a problem.

Also, the term "audit" should not be used unless you did something wrong from the above-mentioned rules.

[agent006140]

Originally Posted by triplex

PayPal will send the 1099 form in mail? or via my email? or in my account?

go into your Paypal account,you have options on how 1099 should be delivered to you.
When it is ready,you can also print it yourself

[agent006140]

Originally Posted by triplex

I have an US SSN , but I am not living in US for a long time. Please explain me how tax works there as i never paid taxes there. So , they will care what PayPal told them ony in case of an audit? i can go and work there, like a normal job, and never hear about what i did on PayPal ?

You have SSN,but are you US citizen or resident.
If you are,you are expected to file income tax return.
If you do not and you have earned sizable income in US,when you re enter US via US customs at the airport,it will show up on the screen,I dont know what they will do?
US tax system is such that a US citizen/resident is expected to report his income no matter where he earns it.

[wallstreetjimmy]

Living abroad. The tax system is all the same get a positive box...file a return and let the expenses outweigh your profit and irs will pay you. Especially if you have kids. Eitc...oops did I tell him the secrets??? Oh well at least I keep it 100% on how things r truly done. Which it's seems like no one on a stealth ebay forum knows how to make a real stealth account currently and if so they hoard the info instead of help the next poor soul

[theintersect]

It's supposed to be postponed till next year for sales under 20k

[agent006140]

I think so,so it is 200 transactions AND $20k,you will get a 1099.
If you make less,then it is up to you to report on your 1040 form.
If you do not report,the only way IRS will find out is when you are audited ,they will look into your bank account(s),all incoming deposits if not wage,SS,pension,inheritance,insurance claims,interest income,investment gains,then what is it???

[vettefever17]

I wouldn't trust the providers. They may still report at 600 despite the IRS announcement because their systems were updated anyways.

[rsot]

Originally Posted by agent006140

then what is it???

then what is it indeed - financial professional time

[agent006140]

It is under Biden when they ask for $600 ,wonder what are they REALLY trying to catch?

[agent006140]

Originally Posted by vettefever17

I wouldn't trust the providers. They may still report at 600 despite the IRS announcement because their systems were updated anyways.

No,they should have revised their systems by now,

[SaiJin]

Originally Posted by triplex

If I am using mine and my mum account and get like 9000$/account/year, in Paypal then we withdraw to Cashapp , will the IRS just send us letters? or we will find about it only in case of an "audit" or "extended audit" , or they will just tax everyone 24% now ?

how it will work now?

Wouldn't it be better to talk to a tax specialist about this?

From what I gather though they are behind and will send you a letter within 2-3 years