What happened to those dreaded 1099 forms we were going to receive from Paypal?

IRS delayed enforcing the new rules until this year.

Where did you find that info?

I decided to do a search and found that CNBC on Dec.16 2022 reported this was still happening and on Jan. 4 2023 Keepertax.com reported that you "may" receive a 1099-k from Paypal for 2022.  Also, that it's only for $20,000 plus in revenue on Paypal., changed from the original $600 revenue amount. They obviously figured out the absurdity.

Plus I don't understand the fear as sales here are generally at a loss and only profit can be taxed. Seems like a target at retail sales done, not the common consumer selling a used piece of equipment. 

The IRS is now going after the lowest paid people in the service industry.

The IRS is doing no such thing.

Jond,

here is the article. Please use facts rather than opinion. 

Guys please create your own post for  personal vendetta 

@soundsspectacular  - Goggle, like your dog, can be your best friend

Thanks for the info. I don't google that way unless I have time and this morning I didn't. 

I live in central Ca, and Jerry’s correct. I paid $5.59 for diesel yesterday. PG&E was just granted a 36% rate hike. Cigar tax and sales tax add 64% to a box of cigars, hence $65 per 100 added to cost. Ate in SF recently and was hit for a 4% local medical tax on top of sales tax and mandatory tip. Renewed my registration on my 2019 pickup for $960. Even though I’m retired law enforcement, I have to submit to a background check and pay my $1 fee, every time I buy ammo. The service people that Jerry referred to, pay income tax based on their sales and are tipped at a rate that’s less than they get taxed on. I have zero judgment on a left or right opinion, these are the facts today where I live. As far as Pay Pal goes, my GUESS is that based on past and current facts, it will be implemented when the state can get it going. So I have a choice to pay or leave. FWIT , I spend a lot of time in Oregon. 

@soundsspectacular I was referring to the comment that the IRS is going after the lowest paid people in the service industry which is a nonsense comment. I am well aware of the 1099s being sent out.

Jond - Gotcha, it's hard to keep up with what's what with all the trolling. My first and possibly last post ( 13 yr. Audiogon member). I'll leave it to the professional posters.

I received a 1099-K from EBay and PatPal, and each is less than $2,500.

You have to prove what you sold was a loss. You have original receipts for everything you sell? 😊

donna got one already

Sold for well over 3k through PayPal, did not get a 1099-K. Those should be mailed out by January 31st, so I doubt I will ever get one👍

75% of taxes are paid by individuals. 

Go figure. 

We've got some thin skinned snowflakes here. Post a correction to a bunch of misinformed (and I'm being polite) talking points and it gets deleted. Well, it was up long enough for everyone to read so there's that.

All the best,
Nonoise

Heck, I haven’t even received mine for Social Security. 😬

Ebay sends 1099 electronically right to your account under the tax heading. So if you got one,  so did the IRS....whether you received it in mail or electronically, it's still a 1099....time to get busy I guess...

From the IRS website:

R-2022-226, December 23, 2022

WASHINGTON — The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season.

As a result of this delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021.

As part of this, the IRS released guidance today outlining that calendar year 2022 will be a transition period for implementation of the lowered threshold reporting for third-party settlement organizations (TPSOs) that would have generated Form 1099-Ks for taxpayers.

"The IRS and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan," said Acting IRS Commissioner Doug O'Donnell. "To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes. The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements."

The American Rescue Plan of 2021 changed the reporting threshold for TPSOs. The new threshold for business transactions is $600 per year; changed from the previous threshold of more than 200 transactions per year, exceeding an aggregate amount of $20,000. The law is not intended to track personal transactions such as sharing the cost of a car ride or meal, birthday or holiday gifts, or paying a family member or another for a household bill.

Under the law, beginning January 1, 2023, a TPSO is required to report third-party network transactions paid in 2022 with any participating payee that exceed a minimum threshold of $600 in aggregate payments, regardless of the number of transactions. TPSOs report these transactions by providing individual payee's an IRS Form 1099-K, Payment Card and Third-Party Network Transactions.

The transition period described in Notice 2023-10PDF, delays the reporting of transactions in excess of $600 to transactions that occur after calendar year 2022. The transition period is intended to facilitate an orderly transition for TPSO tax compliance, as well as individual payee compliance with income tax reporting. A participating payee, in the case of a third-party network transaction, is any person who accepts payment from a third-party settlement organization for a business transaction.

The change under the law is hugely important because tax compliance is higher when amounts are subject to information reporting, like the Form 1099-K. However, the IRS noted it must be managed carefully to help ensure that 1099-Ks are only issued to taxpayers who should receive them. In addition, it's important that taxpayers understand what to do as a result of this reporting, and tax preparers and software providers have the information they need to assist taxpayers.

Additional details on the delay will be available in the near future along with additional information to help taxpayers and the industry. For taxpayers who may have already received a 1099-K as a result of the statutory changes, the IRS is working rapidly to provide instructions and clarity so that taxpayers understand what to do.

The IRS also noted that the existing 1099-K reporting threshold of $20,000 in payments from over 200 transactions will remain in effect.

If the goal were to track down scofflaws hiding retail then I am a bit surprised at this IRS plan. Was not aware that this even happened. Considering COGS for a business that was using such a platform to hide their efforts, and taking an average pretax pure profit after all expenses of 4.5% the targeted taxable profit would be $27 for the transaction in question. The cost of such collections, monitoring and documentation would outweigh the benefit. Not well thought out really from a business perspective.

Yes, we needed another "what happened to 1099-k forms" post.

I'm thinking about starting a thread on new speaker cables, perhaps I'll post it on the IRS site and ask there.

@nonoise 

   +1

@jond wake up and read a newspaper. Or Google it.

Noise 😂 

@jcoehler 

Stick with used speaker cables.

Already broken in.

@nonoise

You forgot ’whitefishpoint1175’ among others, there are too many to recall

@jcoehler I completely forgot about that one!

I had received an email from PayPal in later September, 2022 that I would be receiving a 1099-K early in 2023.  However, in checking my PayPal account under Tax Documents,  it showed "Your account is not eligible for any tax documents in 2022."  There is also an option to go paperless for tax documents from PayPal.  My implied suggestion is you check your PayPal account regarding 1099-K for 2022.  

That is a proposed and voluntary program and its being announce to generate public commentary that's all.

Lol yep sure……..The Government lies every day especially the criminal enterprise running the USA. 

Oh look....skypunk, errolflynn jerry just had another of my posts deleted. Must have woken up from his meds midday nap and read it.

It’s happening no doubt.

Just switch to Fa<~^*ok M>~+^|pl~<e it’s great for now, no problem, of course it’s (generally) in person transaction …but doesn’t always have to be.

@nonoise Happy Valentine's Day old boy. 

Sorry your sad about people having your post deleted. Was BS anyway. 😘

Yes, the IRS delayed the $600 reporting threshold until the 2023 tax year, which means if you sell over $600 this year through ebay, paypal, ect., you will get a 1099-K form to mess with on your taxes.  I had received an email from Ebay that I had sold over $600 and that they needed my full SS#.  But my sales were only $540.  So, I spoke with a person at Ebay and they told me that the IRS considers the shipping charges to be part of my sales total.  Well, I have to purchase the shipping, so I don't actually have that money for more than a day or two.

Most of my casual sales have been of old items I have around the house, like a film camera I bought in 1981 and an AVR I got in 2016.  I don't see why a person who only occasionally engages in such casual sales should have to mess with this on his or her tax return.

Now, I wrote to my  US House member and both of my US senators about this issue.  I suggested that they revisit this and possibly come up with a compromise threshold of $10,000.  Prior to the change, the threshold was $20,000.  I'm hoping they will adjust this threshold with a rider to some legislation they pass this year.

I sold well under $2000 on PayPal this past year. I found there was a 1099 under my PayPal account. They did not mail it out to me. It is on the PayPal page account.

@rbertalotto That is what I was afraid of, i.e., that some of these companies were going to issue a 1099K even if they were not required to because they are so eager to please the government.  I half way expected to receive one from Ebay for my sales being just over $600, but I just checked my account and it says that I did not receive a 1099K for 2022.

I sold well under $2000 on PayPal this past year. I found there was a 1099 under my PayPal account. They did not mail it out to me. It is on the PayPal page account.

BTW, this is the third year that I received a 1099 from PayPal with under $2000 in sales. There was no notification. I just happened to look under "My Account" and there it was....

@rbertalotto did you have 200 or more transactions in 2022? Or are you a PayPal business account?

I'm not a business account, but might have had over 200 transaction as I sell a simple 17HMR Bore Guide for $29.95 including shipping.

But now that I do the math, I certainly did not have over 200 transactions....100 transactions would have been $2995.00