IRS delays new 1099 rule for another year

[disneysteve]

The IRS announced today that the new 1099 rule for electronic payments will be delayed for a year so 1099s will not be issued for 2022 transactions.

Personally, I'm annoyed by this. The law was passed in March 2021 so there has been ample time to prepare. This just means millions of people get one more year to cheat on their taxes. Lots of people in my ebay groups freely admit that they've never reported their income or paid taxes. Those are the exact people this law is targeting. I see no reason to give them a free pass for another year.

It doesn't affect me directly since I've always reported my income and paid my taxes since I started reselling in the 1980s. Getting a 1099 was a non-issue for me.

[rennigade]

Can't blame the people for not filing. Why pay taxes on taxes on taxes. You got taxed on your salary. The person who bought the item you bought was also taxed on their salary and taxed on the item they bought. How many times must one keep paying the piper?

One of the bigger scams in PA, not sure if all states do this...when you sell your car to someone they're taxed on it. If they sell it to someone else, that person also pays a tax. And it goes on and on and on. Makes no sense. That's why most people say they are a family friend and the purchase price was $0. To avoid this scam.

I don't care what the law says, it's a scam. And, most of us break laws every single day, speeding in a car being one of them.

I think the takeaway is people should do what they feel is ethically or morally correct. Cause we all break rules all the time.

[disneysteve]

Can't blame the people for not filing. Why pay taxes on taxes on taxes. You got taxed on your salary. The person who bought the item you bought was also taxed on their salary and taxed on the item they bought. How many times must one keep paying the piper?

So you don't think there should be income tax or sales tax. How would society be funded in that fantasy world?

[rennigade]

So you don't think there should be income tax or sales tax. How would society be funded in that fantasy world?

Sure, but how many times does one need to be taxed on the same thing? The items you're buying already had taxes paid for them by the original buyer. Why do you need to be taxed again on the same thing? Its dumb.

And there already is income tax, anyone who works for an employer pays it. Why do you need to pay it again if you buy and resell something? Those taxes were already paid to the man from the get go. Again, its dumb to pay taxes on taxes on taxes.

Also, I'm almost positive delaware does not have sales tax.

[disneysteve]

how many times does one need to be taxed on the same thing? The items you're buying already had taxes paid for them by the original buyer. Why do you need to be taxed again on the same thing? Its dumb.

And there already is income tax, anyone who works for an employer pays it. Why do you need to pay it again if you buy and resell something? Those taxes were already paid to the man from the get go.

Also, I'm almost positive delaware does not have sales tax.

What are you talking about? You aren't paying taxes twice on the same money. You are taxed on income. It doesn't matter if that income comes from your 9-5 job, your side gig, or your investments. I earn money at my job and pay tax on that. I then invest some of my take home pay in a CD and I pay tax on the interest. If I use some money to buy items that I resell on ebay for more than I paid for them, I'm taxed on that profit. The investment earnings or ebay profit is new income that I haven't previously been taxed on. I'm not being "taxed again on the same thing".

And yes, Delaware has no sales tax. Montana, New Hampshire, and Oregon don't either. I'm not sure what that has to do with anything. They make up for it with other taxes like on gas and property and such. The money to run the state has to come from somewhere.

[mumof2]

Damn I just wish they would do this years "normal" taxes that we sent in january...almost a year and still haven't been processed...it is pathetic...the IRS is one of the most incompetent places I have ever dealt with...no wonder they haven't got anything organised they can't even do their normal job

[Joan.of.the.Arch]

Mumof2, if the person(s) in your household who pays US income tax is an American citizen, perhaps a letter requesting help from their US Representative or Senator could break the log jam. Once in a while, these electeds can get something done for individual citizens, believe it or not.

[rennigade]

Myself and other outlaws are just thankful the government is so bad at what they do. We're taxed on everything, those that "own" a home are lucky enough to pay rent each year in the form of taxes. Some places even make you pay a property tax on vehicles, Arlington Virginia being on of them. And the fact that we're so privileged that when we receive a paycheck we have to turn part of it over to the organized legal crime boss is gross. The government freely prints trillions a year, stop stealing from the people.

[IanNewman]

...the IRS is one of the most incompetent places I have ever dealt with...no wonder they haven't got anything organised they can't even do their normal job

True. I don't understand how they manage to be so absurd. This is beyond reasonable.

[Petunia 100]

Myself and other outlaws are just thankful the government is so bad at what they do. We're taxed on everything, those that "own" a home are lucky enough to pay rent each year in the form of taxes. Some places even make you pay a property tax on vehicles, Arlington Virginia being on of them. And the fact that we're so privileged that when we receive a paycheck we have to turn part of it over to the organized legal crime boss is gross. The government freely prints trillions a year, stop stealing from the people.

Well, if you really minded paying taxes, you'd move to a third-world country and enjoy the lack of infrastructure. You don't appear to have done that.

[mumof2]

Myself and other outlaws are just thankful the government is so bad at what they do. We're taxed on everything, those that "own" a home are lucky enough to pay rent each year in the form of taxes. Some places even make you pay a property tax on vehicles, Arlington Virginia being on of them. And the fact that we're so privileged that when we receive a paycheck we have to turn part of it over to the organized legal crime boss is gross. The government freely prints trillions a year, stop stealing from the people.

In australia we pay taxes on everything...and that is fine, they pay for roads/repairs etc, they help pay for welfare...the taxes pay for so many things and we don't mind paying it...we pay federal taxes over there and get nothing from it...and I'm okay with that...its helping pay for something over there

[Off-Grid Lover]

I wouldn't mind paying taxes but it seems we are taxed over and over here in Calif. I love driving over the border into NV to buy inventory, no tax!
Well at least where we shop at the Thrift Stores which are non-profits. Food and gas is much cheaper too.

Pay taxes for the Forest Service Campgrounds but then pay $22+ to stay there per night. No running water, heat, trash, nothing.

Sweden appears the perfect place to live with regards to taxes. Sure they are higher than ours but not by that terribly much and look at all you get!
Healthcare, Education, much time off from work. It's great.. https://www.youtube.com/watch?v=TIN4CKBR2LE

[LivingAlmostLarge]

I think it's going to cause an uproar when things like venmo is used for transactions between friends. I use it between my friends when I stop at costco and pick up stuff for them. The $40 transactions have added up. Or they pick up something for me from school I have been paid also Girl Scout cookies A LOT by venmo. Yes it's a sale but it's not selling of goods for income. ugh. I easily do over $2k in girl scout cookies from neighbors and coworkers.

[disneysteve]

I think it's going to cause an uproar when things like venmo is used for transactions between friends. I use it between my friends when I stop at costco and pick up stuff for them. The $40 transactions have added up. Or they pick up something for me from school I have been paid also Girl Scout cookies A LOT by venmo. Yes it's a sale but it's not selling of goods for income. ugh. I easily do over $2k in girl scout cookies from neighbors and coworkers.

They do need to figure out how that's going to work as so many people do the same thing now. We use Venmo and Zelle (which isn't affected by the 1099 law) to settle up for stuff between friends and family and coworkers. One persons orders lunch on their card and everybody else sends them their share with Venmo, for example. Or we go out to dinner with another couple, I pay the check and the other couple sends me their half with Zelle.

That's the stuff that will be a mess. Also, all of the people reselling personal items for less than they paid. They don't have any records of what the stuff cost them.