re: IRS warns taxpayers about new $600 threshold for third-party payment reporting

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Just use it as your day-to-day spending money and don't deposit it

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So the banks are reporting any deposits over $600?

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An individual selling at item who already paid taxes on this item is not a business and should have to pay tax again to the IRS.

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State sales tax would be a bit iffy, but as long as you can show you paid more than $400 for the iPad it's not a taxable transaction.

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So the banks are reporting any deposits over $600?

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Not sure. It used to be 10k. But if I had a bunch of cash I didn't want the government to know about I'd just use it for day-to-day expenses like gas, restaurants, groceries etc until it was gone. That would be kind of hard to do with 5 million but 25k shouldn't take too terribly long

Technically the IRS can go back as far as they want if they can prove fraud or gross negligence.

Not a lawyer, and not official advice, but unless you made money on the deals it's not worth amending a return to add an informational only schedule.

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they aren't coming for the billionaires theyre coming for us

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This is the problem.

Going after the everyday guy.

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Not sure. It used to be 10k.

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I don't do any ebay, Venmo, etc transactions as I don't sell anything but I did deposit $600 in cash the other day($100 for my birthday, $200 paid back from my sister and $300 paid back from my brother). That would suck if I get audited and have to explain that train wreck.

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Sort of related question- I used to have several season tickets in Tiger Stadium, including suites, parking passes, etc.. Most of them went to friends and family, but sometimes id sell on Stubhub.. Now, even though i no longer mess with any of that and ive since let all my tickets go back to the school- Stubhub is asking me for my tax id number.. I haven’t sold anything thru them in years, but do yall think they would come after me for sales i made years ago ? Or since these tax policies are ostensibly new, am i safe ? Obviously i will eventually consult a professional if it becomes a problem, just wanted to get yalls thoughts .

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THIS IS NOT LEGAL ADVICE


First, understand this is a REPORTING requirement and does not change what you owe now or in the past. If you sold something in the past and made a profit on the sale you owed taxes then.

Second, it is highly unlikely any of these services that are required to report are going to report things prior to the reporting rules coming into effect. They don't want to report at all, it is a hassle, costs them money and will likely cost them customers that don't want to be bothered with the tax issues or it just pisses them off and they move to cash sells if they sell.

Third, as noted if they audit you in the future and find fraud, substantial error or gross negligence in that year they can go as far back as they want to. Like a proctologist that just keeps running the sigmoidoscope up your arse until it comes out your mouth. You never ever want to be in this position since you are going to have a very bad day.

Fourth, what I would do but never suggest anyone else do is I would not amend old taxes unless we were talking about a significant amount of income. Keep my taxes clean and correct, avoid audits and if I am audited provided complete and proper documentation to eliminate any indication of fraud or negligence so the likelihood they look past 3 years or definitely 6 is extremely low.

THIS IS NOT LEGAL ADVISE AND LIKELY EXTREMELY BAD ADVICE SO IT SHOULD BE IGNORED COMPLETELY.

Will this be reported on Schedule C?

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25k in cash

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$500 monthly deposits for 4 years. Problem solved.

Tons of insider trading going on but how dare you make a few hundred bucks on something you sold on eBay. That needs to be taxed or you are a bad human being.