Warning to all sellers!

[Deputy819]

I'd rather do a personal check and wait a week for it to clear. At least a bank will actually take care of fraud.

Yep…this works well, also. Most of my transactions here are electronic, but there have been a few where I have obtained a cashiers check from my bank and then sent it to the seller via 'Certified Mail' with tracking and signature request upon delivery.

 

[akmtnhnt]

Yep…this works well, also. Most of my transactions here are electronic, but there have been a few where I have obtained a cashiers check from my bank and then sent it to the seller via 'Certified Mail' with tracking and signature request upon delivery.

That's also how I do it, but the buyer did not.

Just saying, getting a postal money order is about as safe as stuffing $100 bills in the envelope.

 

[Recon$$]

This administration is trying to change bank reporting measures to $600 as well. If they get their way, everytime you have a transaction of $600 or more they will record the transaction and that information will be available to the IRS...

 

[DoneNOut]

This administration is trying to change bank reporting measures to $600 as well. If they get their way, everytime you have a transaction of $600 or more they will record the transaction and that information will be available to the IRS...

So, this the inflow/outflow being considered? The third-party transaction 1099K is gonna happen Jan 1, 2022?

 

[L.Sherm]

That's also how I do it, but the buyer did not.

Just saying, getting a postal money order is about as safe as stuffing $100 bills in the envelope.

PayPal any better?

 

[nksmfamjp]

This is ridliculous! What is this about? We have big corporations, a bunch of wealthy a-holes and even a former President scheming the system to show little to no income.

Then most of us work for a living. Most of us have no choice in showing as income or not.

Hell, even if you view it as an attack on online sales, will the IRS actually go to China to get their money from eBay sellers.….no. I quit eBay when it became a bunch of Chinese companies pushing gray market stolen intellectual property.

In the end, this will likely double the size of the irs to collect a few dollars from poor saps like us who are already taxed to near extinction. $600….wth! The finger is pointed the wrong direction again.

 

[JAYgs8163]

I'm trying my best to understand: (According to the PayPal Article)

Q: Why is this happening now?
The 1099-K reporting requirement was part of the American Rescue Plan Act of 2021 passed earlier this year by Congress and signed into law by the President. The effective date for these new changes is January 1, 2022.

When do these changes come into effect?
The 1099-K change will take effect January 1, 2022. PayPal and Venmo will be required to provide customers with a 1099-K form if they receive $600 or more in goods and services transactions during the 2022 tax year.

Then the article says this:

"This means you will need to take into account the Threshold Change with your Tax Year 2022 filings. The In-flow and Out-flow change has not been considered by Congress yet and therefore doesn't have an effective date."

SO, what is this In-flow/Out-flow component?

I believe this to mean: "Inflow/outflow" is just about the amount of cash moving in and out of your PayPal/Venmo account, it's part of the "Bank secrecy act" and it's reporting limit is set at $10k, the proposed change is to lower it to $600. The Bank Secrecy Act was put in place to fight money laundering from illegal activities. "Goods and Services PayPal/Venmo transactions" though is the key for all this reporting. "FF transactions" are exempt to 1099k reporting but not the inflow/outflow reporting which would be form 8300.

Another thing, a money order or a cashiers check is basically considered cash by your bank, soooo once you transact a deposit at the bank the same process for reporting "inflow/outflow" takes place. Today, You sell your used car for $10k and go deposit the cash at the bank a form 8300 is sent to the feds. Proposal, lower it to $600.

Another thing, form 8300 (inflow/outflow) is not sent to you, only sent to the feds. You never see it.

 

[nksmfamjp]

As you see PayPal f&f is excluded for now!

 

[DoneNOut]

That's also how I do it, but the buyer did not.

Just saying, getting a postal money order is about as safe as stuffing $100 bills in the envelope.

I just remembered your credit card company/bank can issue checks that you can use like a regular check, but the amount is put on your credit card. Every time I've had an issue with fraud on my credit card the amount was reimbursed to me and the issue went to their investigations.

 

[softtail103]

Exactly what I was pointing ouOpen a

So, Gunbroker isn't/wouldn't be required to report your sale?

Who knows.

 

[JAYgs8163]

So, Gunbroker isn't/wouldn't be required to report your sale?

Only if you use their method of checkout/payment process. The process of payment is what's getting reported.

 

[JAYgs8163]

"Inflow/outflow" is the key component here on personal accounts. If you have large amounts of "cash instruments" moving in and out your personal account a form 8300 is triggered by your bank and sent to feds now. The limit is $10k though over a certain period of time and they want to lower this to $600.

For more info do a search on the "Bank Secrecy Act" or "Form 8300 and how it fights money laundering".

 

[DoneNOut]

As you see PayPal f&f is excluded for now!

You will still get a 1099K for that amount and then file the tax form to show that was F&F money. PITA

 

[softtail103]

"Inflow/outflow" is the key component here on personal accounts. If you have large amounts of "cash instruments" moving in and out your personal account a form 8300 is triggered by your bank and sent to feds now. The limit is $10k though over a certain period of time and they want to lower this to $600.

For more info do a search on the "Bank Secrecy Act" or "Form 8300 and how it fights money laundering".

This can be change with the stroke of a pen. The one we are talking about is the reporting across all financial institutions. It is part of the build back better plan. PayPal being the king of this. They report nothing. The key to getting around this is being able to cash any payment form without it being reported. We are down to USPS money orders. If you use a cashiers check you will need to take that to the bank to cash it or pay a check cashing joint 3-5% to cash it. Maybe being a business owner I have gotten used to dealing with the new banking and business laws that change every year for us. They will spend $10,000.00 to send you a $500.00 bill. They only way to combat this is to save your invoices for the purchases of anything you may sell later. Then use it a write off as a proven loss.