Venmo, Paypal, etc payments to trigger 1099s in 2022

It is my understanding that after all the uproar about this the law was amended to amounts of $10,000 or more.

www.cbsnews.com/news/irs-bank-account-update-change-treasury-10000-dollars/

I am remembering that $600 is the threshold where you have to W2 a contractor and that banks report all transactions over $10K. 

10K is for bank accounts $600 for commercial transactions. Of course you were always supposed to report this stuff, now they are just making the reporting mandatory. Yeah it’s going to be a major pain in the ass.

OK...I deleted my political post. But you know what it said...

The implementation of a sales tax (State) was to apply to the first NEW sale at a retailer. You buy you daughter a bike at the local bike shop and you pay sales tax on the sale. After a few years she outgrows the bike, so you sell it used to your neighbor Sam for his daughter. He hands you some cash and you give him the bike. Sales tax was only collected once, from a retailer, the first time something was sold. You didn't charge your neighbor tax when he buys your daughter's used bike. Well the same would go for an amp, or keyboard, or guitar. The sales tax was paid at the original point of purchase. People who manufacture the bike don't pay tax "no-tax manufacture". The retailer doesn't pay tax "no-tax resale", but the retailer charges the end consumer tax on the original sale and the retailer then sends that to the state.

Over the last few years a movement to tax EVERY consumer sale on used merchandise has occured. This is not what a sales tax was originally intended to do. It is a HUGE tax increase and nobody talked about it. The used merchandise market just in the US would amount to billions of taxable sales every year. So this raises the question if you sell that bike to your neighbor, do you have to collect sales tax like EBay does now for used items? Remember, EBay is not acting as a retailer, but as an agent (intermediary) for a sale of used items between a seller and a buyer. It seems odd that they collect sales tax but they now do. Same as Reverb.

This sucks and blows at the same time. That's physically impossible, but the IRS/USA has found even more way to screw the little guys and girls.

Thanks for the heads up, anyway. It's better than getting a nasty surprise. I was thinking about selling some big items soon but now I have to recalculate.

Didn’t read it but I’m pretty sure your views are pretty a political on this one my friend!

Normally I would say no matter what your political view contact your representatives, but one it comes to taxes the dirty secret of government/ politics is that the US tax code is what keeps K street ( lobbyists) and our whole election finance system rolling. On this one they are all guilty.

I always wanted someone to figure out how much of every dollar you spend ends up paying for someone else to lobby about reducing their taxes.

Depends where you live😜
Back in the day when we knew at some point mail order companies would some day be collecting sales tax I remember the Full Co programmers going nuts because not only do you have all those little taxing authorities that will someday want their pound of flesh but besides different rates they all have different rules for rounding off !

Not to put you on the spot, but if I sell my 1968 Fender Showman for $1,000 and don't report it to taxes.... is the IRS going to come after me with handcuffs and lawsuits?

My understanding is that this admin is proposing drastically increasing the amount of IRS agents. Got go get those crumbs from us poors.

That has been cut from the budget almost every year for the last 20 years ( KC has a big IRS office that was 3 blocks from my old loft).

I don't completely understand the ramifications of putting music on the blockchain, but if every sale was recorded and properly cataloged, it would be amazing for the creators. The problem is, the people in charge WANT that fog...BMI/SESAC/ASCAP don't want you to know how many times your song has actually been streamed or sold - then they'd have to pay you for it...and they're the GOOD GUYS. Imagine how much the labels/master owners fudge each second.

If and when a musical artist does something like release new music via an NFT...they could release a limited run of the song. Nothing after it. Then there would be open bidding for it, and if it was re-sold, the artist would receive a cut. For instance - look at something like HMBL. They have NFT galleries. I believe you can create an NFT which to this point is pretty much just digital art. But if you created like an album cover and sold 10,000 of them, you could attach the ability to download the song. The record of the purchase is recorded on the blockchain (for eternity)...the question would be - how do you watermark the song? IDK. Would you not allow it to be streamed or played on radio? You think 1000 of those at $50 apiece - that's half a million dollars. That's more than co-writing a No.1 country song. For that matter - what if you sold 500 at $10 apiece - that's $5000. That's a ton better than any of my songs would make streaming on Youtube. Then, when and if it's sold again at a higher price because of scarcity, the artist gets a cut.

Another question with it - how do you let people know where and how to buy it? HMBL is a company/platform I invested a tiny bit of money in - it's a fintech that's trying to build an app that is Venmo, Paypal, Amazon, Coinbase, etc in one app. This is the hope: one app that you can create on, sell on, offer in USD or crypto...you push a button and it works. Regardless of country...monetary exchange is already built in.