IRS to Track Online Sellers' Payment Transactions Beginning Next Year

[evilfunnystuff]

complete story at http://www.auctionbytes.com/cab/abu/y210/m03/abu0258/s03

found via http://www.infowars.com/irs-to-track-online-sellers-payment-transactions/

http://www.auctionbytes.com/cab/abu/y210/m03/abu0258/images/irs_form_1099k.jpg

IRS to Track Online Sellers' Payment Transactions Beginning Next Year
By Barbara Weltman
AuctionBytes.com
March 07, 2010 Internet sellers who don't report their sales will no longer be under the radar. Starting next year, any bank or other payment settlement company that processes credit cards, debit cards, and electronic payments such as PayPal will have to issue information returns telling the IRS what merchants receive. The new returns are Form 1099-K, Merchant Card and Third-Party Payments.

SNIP

[tmosley]

Pay with silver coin, through the mail.

[angelatc]

Pay with silver coin, through the mail.

The problem with that is that eBay won't allow sellers to mention that they'll accept that form of payment.


Very small merchants won't be issued information returns. "Small" for this purpose means annual gross sales on merchant cards of no more than $20,000 or 200 or fewer transactions. In other words, reporting is required only if gross amounts for the year exceed $20,000 and there are more than 200 transactions.

[Anti Federalist]

Very small merchants won't be issued information returns. "Small" for this purpose means annual gross sales on merchant cards of no more than $20,000 or 200 or fewer transactions. In other words, reporting is required only if gross amounts for the year exceed $20,000 and there are more than 200 transactions.

Which will be for this year.

Next year it will be $10,000 and 100 transactions.

And so on...

[robertwerden]

So you set up 20 accounts and keep switching each time you are at the limit.

[angelatc]

Which will be for this year.

Next year it will be $10,000 and 100 transactions.

And so on...

More likely inflation will provide that effect. The alternative minimum tax, and the $10,000 cash reporting limit are just too examples of that phenomenon.

When they started tracking large sums of money. $10,000 was a whole lot of money to most people.

[evilfunnystuff]

it really sux cause i was really hoping to start doing more selling on there but there is no way i am going to be able to do the taxes associated with it and i usually end up taking a loss and rarely make more than a couple bux

looks like ill only be sellin 199 things on ebay this year (maybe less cause i bet chargebacks and refunds like gas stations and stuff will be counted as well)

this is really going to cut down on small sellers who usually have the best deals

i bet craigslist is gonna get a lot more popular with this

[Pauls' Revere]

it really sux cause i was really hoping to start doing more selling on there but there is no way i am going to be able to do the taxes associated with it and i usually end up taking a loss and rarely make more than a couple bux

looks like ill only be sellin 199 things on ebay this year (maybe less cause i bet chargebacks and refunds like gas stations and stuff will be counted as well)

this is really going to cut down on small sellers who usually have the best deals

i bet craigslist is gonna get a lot more popular with this

or this place.
http://www.upillar.com/

p.s. whats this gonna do to ebay stock?

[BuddyRey]

Is there any way to stop this atrocity, or is it pretty much a done-deal?

[evilfunnystuff]

Is there any way to stop this atrocity, or is it pretty much a done-deal?

according to this other story they did on it it was bundled in the Housing and Economic Recovery Act of 2008
http://www.auctionbytes.com/cab/cab/abu/y209/m01/abu0231/s02

so short of some major shit i think its a done deal

[angelatc]

Is there any way to stop this atrocity, or is it pretty much a done-deal?

Other than repealing the income tax, you mean?

[TonySutton]

I know several art websites where fans will buy custom icons or other small digital are for $5-10 dollars a pop. They typically use Paypal. The money would be under the radar but many of them do over 200 transactions in a year, definitely over 100.

Also there are sites like Etsy and Artfire where folks sell crafts and use Paypal.

[RonPaulwillWin]

So you set up 20 accounts and keep switching each time you are at the limit.

Yea but you will have to reset your feedback rating every time, making it hard to sell.