Get ready for Uncle Sam to dip into your pocket more than he already has been.
Those of us that have been selling crafts or collectibles or doing side jobs and being paid via third-party payment processors are about to get hammered.
The IRS's new plan to audit these processors means a lot more taxes come April.
Big Hit
Joe Biden says people making under $400,000 will not be taxed more, but that is a lie.
That side money people have been making for pick-up jobs and selling odds and ends on eBay or flea markets is about to get taxed.
The new tax laws will have the IRS looking at all transactions over $600 now.
As part of the American Rescue Act, all transactions over $600 now require a 1099-K form to be filled out during tax time.
Fox News contributor Raymond Arroyo stated, "Joe Biden said no one under $400,000 would be targeted by his tax plan. This is going to hit people making nothing to millions, but it's going to hit the middle class."
Before the American Rescue Plan was enacted, the threshold was $20,000 total or more than 200 transactions in a single year.
That is reasonable because you are likely using that processor to conduct your business.
Now, however, a single transaction of $600 sets off the alarm.
That could be you selling a hooptie to a neighbor for $800 just to get it out of your driveway. Now Uncle Sam is going to take his piece.
Americans for Tax Reform's Grover Norquist stated, "This affects this year's taxes, 2022 taxes.
"If these forms are flying around to the IRS, and if you're not ready to defend yourself, if you don't have all the backup proof that you know what you paid and how you did it, you're going to end up paying taxes. You're going to end up being audited because you don't have the paperwork."
Arroyo added, "One report by Ticketmaster or Venmo, you get an audit. This is a honeypot for audits."
Yup… that concert you could not go to that you paid $500 for tickets and sold them $650… now you are paying taxes on that money.
Welcome to Joe Biden's world.
Source: Fox News
