The Biden administration’s plans to get into your personal bank accounts and monitor transactions over $600.00 was slapped down with the demise (currently) of the Build Back Better agenda. So, just as with the vaccine mandates, the Biden administration is using corporations to do his dirty work. A line item inserted into the American Rescue Plan will now be the “back door” to finding out how Americans are spending their money.
these new tax laws for paypal and venmo are just the govt picking on the little guy again, especially freelancers
— Dreamin' 🆖 (@dreaminerryday) January 3, 2022
From the Daily Mail UK.
President Biden’s IRS is cracking down on payments made through third-party apps, requiring platforms like Venmo, PayPal and Cash App to report transactions if they exceed $600 in one year.
The new reporting requirement will ensure that small businesses that receive payments through those apps are paying their fair share in taxes on them.
Beginning Jan. 1, 2022, third-party payment processors were required to report such transactions. Though businesses were always required to self-report such incomes to the IRS, many often did not keep record of their smaller transactions.
And how do they know that? The small business owners I know are exceptionally careful about their record keeping, so this sounds more spin than fact. The only revenue generation that will be happening from this is with accountants and lawyers. Contrary to Dementia Joe’s rants, entrepreneurs of every color have both on the ready. Biden and Co. know that they will get nothing but dirt digging under that rock.
So, who doesn’t have an accountant or lawyer on hand? Your average person that uses these peer-to-peer apps for convenience, to save themselves excessive bank and transaction fees. Well, now that ship has sailed.
Biden admin wants to tax Venmo and Cash app transactions over 600 FOR THE YEAR. Claiming it’s only for good and services, but how will they determine that? What happened to taxing the rich? Y’all still believe all the lies his campaign spewed? Open your eyes.
The new rule is only for goods and services transactions, not personal, such as paying a roommate for rent or reimbursing a friend. It also excludes anyone selling a personal item at a loss, such as a couch bought for $700 and sold for $650.
The cash apps will now be required to send the 1099-K form to businesses with electronic transactions greater than $600. The new change will apply for the 2022 tax season.
‘For the 2022 tax year, you should consider the amounts shown on your 1099-K when calculating gross receipts for your income tax return,’ PayPal warned on its website. ‘The IRS will be able to cross-reference both our report and yours.’
There goes that privacy aspect again. Why does the IRS need to know that I spent over $600 on Botox treatments? Nails? Lingerie? Gun purchases? Why do they need to be able to cross-reference any of my purchases? Do they comb this way through every transaction for Amazon and Google?
Doubtful, but they’ll rifle through the transactions of entrepreneurs and small businesses like their scrounging for loose change in their personal junk drawer.
It’s un-American and another infringement on civil liberties. If the corporate owners of these peer-to-peer apps had any balls, they would never have allowed this to be inserted. But as we are discovering with the vaccine mandates, it’s government money or their balls—so they gladly become eunuchs.
What is going to happen with Venmo, PayPal, CashApp and other peer-to-peer apps? They are going to lose a significant amount of their revenue. All those transactions above $600.00 that they now charge service fees of 1 percent to 5 percent will simply stop. The small seller, retailer, freelancer and entrepreneur who used to frequently turn to these apps will simply find another way to pay and get paid. The average American will go back to cash being King. Expect an increase in crypto currency transactions as well.
A group of small businesses in my town announced yesterday that because of some new Biden rules to tax transactions on peer-to-peer apps (Venmo, Zelle..) they will only be accepting cash or check for their goods. #LetsGoBrandon
— SoTrumpie (@SoTrumpie) January 2, 2022
Necessity is the mother of invention, and since small business is the creative driver of the nation’s economy, the small business person will always invent that workaround.
Let’s Go, Brandon.