IRS Issues Tax Documents For Side Hustles Transactions Over $600

Yahoo News

Beginning this month, online business owners who sell their goods and services through sites like Venmo, Etsy, and Airbnb will be sent tax forms if they have received payments of more than $600. Recently, tech companies have notified users of the impending changes and asked them to submit tax information, reports The Washington Post.

“Until this year, the threshold was much higher ($20,000 and 200 transactions), so it didn’t affect nearly as many people,” Venmo said in a message to its users. “This requirement only pertains to payments received for sales of goods and services and does not apply to friends and family payments.” 

The new modifications to conduct business online triggered a collective outcry on social media. The once low threshold allowed Americans to jump into entrepreneurship; 5.4 million people started their businesses last year, according to the data reported by the U.S. Census Bureau last week, the Washington Post reports.

The changes directly conflict with President Joe Biden’s promise to tax wealthier Americans.

“Maybe it’s a boon to the IRS, but it’s not coming from the billionaires — it’s coming from the smaller businesses,” Sandra O’Neill, a tax attorney, and partner at Bowditch & Dewey, said in an interview with Bloomberg. “It’s much harder to go after the billionaires. It’s much harder to go after Amazon. If you have someone who makes a mistake — a small business — it’s very easy to go after them.”

Apps, marketplaces, and payment providers reported payments to the IRS for users that received more than 200 transactions, totaling over $20,000 in value in a particular year. The new $600 baseline that transpired last year is part of the American Rescue Plan that the White House announced to issue relief to small businesses affected by the pandemic.

As a result of COVID-19, service providers like hairstylists became self-employed rather than work for commissions in established salons. They relied on PayPal Holdings Inc.’s Venmo and Block Inc.’s Cash App to accept payments, said Mary Rector, chief executive officer of the hairstyling community Behind the Chair.

“This adds insult to injury, knowing how long they were shut down for and how much income they lost,” said Rector, whose group says it includes 10 million hairdressers around the world. “These people went out on their own, they started to do house calls, they started to rent chairs — that’s why Venmo became such a big deal.”

https://finance.yahoo.com/news/irs-issues-tax-documents-side-193857428.html

3 thoughts on “IRS Issues Tax Documents For Side Hustles Transactions Over $600

  1. all these idiots are doing is forcing this to go underground
    Because we’re obviously smarter than they are

    This is also going to make cash a bigger king
    And your local small guy moves into his garage and no longer takes checks or credit cards

    No tracks

    But what I see that really pisses me off
    Is we’re allowing these fcks to rule us like this without taking their heads off
    As Congress makes its own rules for insider trading

    1. Yep, off the books is the way to go (even with job employment…screw the W-4 crapola!) Now is the time to “mess with the IRS”!

  2. When the aristocracy finally goes down ALL of its daylight robbery institutions will go down with it! Usury & theft (taxation) are the main ways these weak scumbags maintain any shred of control over the masses. Not just by the use of it but by the threat of what would happen without it. The main propaganda they use on the masses is the threat of “complete anarchy & societal breakdown” if we were to one day wake up & say “to hell with these filthy scumbags & their control mechanisms”. You can be sure they’ll try to employ some of that physically on their way down too the way they stage shootings, etc now. EoS, that’s how these ignorant masses “allow” themselves to be ruled & I’m totally with you & everyone else here when you say it pisses you off! Fear is the killer as they say & the masses certainly cower in fear even while pretending to be tough or intelligent on the outside. I’ve been frustrated with the compliance ALL my life (that’s right, even when I exited the womb lol!) & I’m absolutely sickened by it today! They say people are waking up daily but nowhere near fast enough & certainly nowhere near hardcore enough for my liking. Victory, as always, will be at the hands of a hardcore minority with the support of many of the newly awakened who want the change but won’t or can’t fight on the frontline. It’s coming & it WILL be a worldwide victory…

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