Receive $600 on Venmo? Your IRS Forms Are Coming in January
If you sold a couch, re-sold tickets at the price you paid, or just did some extra work on the side, you could trigger greater scrutiny from the Internal Revenue Service (IRS). The tax agency will begin sending 1099-K forms to third-party payment platform users for transactions amounting to more than $600 early next year.
As CNBC reports:
“The change applies to payments from third-party networks, such as Venmo or PayPal, for transactions such as part-time work, side jobs or selling goods, according to the IRS.”
These are hardly the activities of the wealthy elite that Democrats claim they want to go after. Worse, this comes after Democrats supercharged the agency with plans for an army of 87,000 new agents to go after Main Street workers and working families.
The Biden Administration’s $600 Reporting Requirement Targets Low-Income Earners.
- The new reporting requirements will ensure anyone who sells a couch or pays a babysitter electronically could trigger further IRS scrutiny.
- This violates President Biden’s promise that greater tax enforcement wouldn’t hit lower- or middle-income Americans.
READ: Reminder: Biden Admin Using PayPal to Monitor Low & Middle Income Earners
Democrats Supercharged the IRS to Squeeze Suffering Middle-Class Families.
- In their so-called “Inflation Reduction Act,” Democrats supercharged the IRS with 87,000 new agents, which will lead to more audits of families making less than $400,000.
- A Congressional Budget Office (CBO) analysis makes clear that audit rates will “rise for all taxpayers” and the policy “would return audit rates to the levels of about 10 years ago.”
- The Joint Committee on Taxation (JCT), Congress’s official tax scorekeeper, says that up to 90 percent of the money raised from under-reported income would likely come from those making less than $200,000 a year. Only four percent to nine percent would come from those making more than $500,000.
READ: CBO Confirms Inflation Act Unleashes IRS Audits and Enforcement on Families Making Less Than $400,000
Democrats Are Covering for the IRS & Haven’t Given Up on Their Surveillance Scheme.
- Not only have Democrats voted against guardrails that would prevent the IRS from abusing middle-income earners with more audits, but Democrats are likely to revive their invasive bank surveillance scheme.
- Ways and Means Republicans introduced legislation last year to prohibit any future efforts to impose a surveillance scheme.
- Due to the Administration and Democrats’ inaction on the agency’s historic backlog, Americans are waiting longer for their tax filings to get processed.
READ: New Schumer-Manchin Bill Will Supercharge Long History of IRS Abuses
Republicans Will Hold Washington Accountable.
- An important part of Republicans’ Commitment to America is to conduct rigorous oversight to rein in government abuse of power and corruption, and to provide real transparency.
READ: How Ways and Means Republicans Are Fighting for A Government That’s Accountable