adamnp Posted September 19, 2011 Share Posted September 19, 2011 Finally! Some fucking help from the IRS and the government of the US for all these tax cheats. Personally, I am all for this new piece of paperwork. This will require anyone utilizing any third party merchants such as paypal, google checkout, alertpay, 2checkout etc to file 1099-K forms for all clients that process more than 200 transactions and $20,000 yearly in dollar amounts. I feel this will significantly put a damper on some of the little kid companies running a muck over the internet. From ebay scams, to 'get rich quick' scams, to kiddie GSP's all the way to porn ripoffs.... While all the ones affected by it are probobally screaming going wtf wtf wtf...us legitimate companies are smiling What's your thoughts on this new piece of IRS law ? (In case you didn't know, this took effect on January 1, 2011 and does relate to this years taxes) The only downfall I see is some of the crazy scammers going overseas, or creating overseas accounts -- though this could take some of the market share off PayPal and bring some others into the picture that will maybe lower processing rates ? who knows... Let's see what the rest of you think More info can be found here -- http://dr.tl/c17855 Link to comment Share on other sites More sharing options...
proclan Posted September 19, 2011 Share Posted September 19, 2011 In a way it's good idea Paypal sent emails out about this last year. They also incorporated financial statements in Paypal now. The statements will make it much easier for tax time, the bad thing is most of the kiddie hosters usually do not last more than 200 transactions. Link to comment Share on other sites More sharing options...
Nisd Posted September 19, 2011 Share Posted September 19, 2011 To be honest don't think it will help right away. Most of the kids don't know shit about any of these rules, and just takes a dump on Tax and such. Link to comment Share on other sites More sharing options...
adamnp Posted September 19, 2011 Author Share Posted September 19, 2011 To be honest don't think it will help right away. Most of the kids don't know shit about any of these rules, and just takes a dump on Tax and such. Thats what is the good thing about this. Instead of entrusting the person with claiming the income as they typically should, and which most dont it now places the requirement in the hands of the processor, aka PayPal, etc. These kid's will be forced to abide now. Link to comment Share on other sites More sharing options...
Nisd Posted September 19, 2011 Share Posted September 19, 2011 Well not all of the kids are located in the US. Link to comment Share on other sites More sharing options...
trancemode Posted September 20, 2011 Share Posted September 20, 2011 I'm glad to see this however... I think its far way more easier for kiddie hosts to get away with. Not only that but they can just make new paypal emails if they wanted to. Also right now, I think its actually affecting the "real" legit able companies more since the way I see it, I haven't seen a "child managed" company even last that long nor have over 200 transactions before they close or disappear. That would suck for many eBayers tho. Link to comment Share on other sites More sharing options...
Jack Posted September 20, 2011 Share Posted September 20, 2011 That would suck for many eBayers tho. Reading though this thread I didn't look at in the eBayers type of light, valid point raised, it would suck. Link to comment Share on other sites More sharing options...
adamnp Posted September 20, 2011 Author Share Posted September 20, 2011 Trance; they can't make new paypal emails - You now need to submit an EIN, SS#, or a non-profit # -- and they will automatically disburse the 1099-k's **COMBINING** any and *ALL* accounts. -200 transactions really isn't that many.....Put it in light, 35 transactions a month for 6 months -- roughly 1 sale a day. If I had definitive proof I'm sure I could name a slew of past companies that broke this barrier, but didn't pay their rightful taxes or for that matter idiots stealing ipods from walmart and selling them off ebay. The 'kids' that aren't located in the US will obviously be able to hinder the system a bit, but the majority of the issue lies with US based companies anyway IMO -- So I think it will be a nice blow to the asshats not paying their fair share, and using that 6-8% as their profit margin while you and I send it to Uncle Sam. As far as Ebay, that was and is the culprit behind the existence of this bill... That's why I mentioned it in the first post There are *MANY* traders that fall into this...again, bring in that 200 transaction limit. Just don't forget -- you need to hit both quots... 200 transactions *AND* $20,000. All I know is it relaxes my mind I know there are competitors right now scrambling to figure out how they are going to come up with $xxxxx to pay the IRS now Link to comment Share on other sites More sharing options...
DougK94 Posted September 21, 2011 Share Posted September 21, 2011 All I know is it relaxes my mind I know there are competitors right now scrambling to figure out how they are going to come up with $xxxxx to pay the IRS now I agree that this is a good move. For the 10 years I have been in business, I have always reported all income, from Paypal and other sources. It makes it so much easier not having to worry about that aspect during an IRS audit. Link to comment Share on other sites More sharing options...
adamnp Posted September 26, 2011 Author Share Posted September 26, 2011 I agree that this is a good move. For the 10 years I have been in business, I have always reported all income, from Paypal and other sources. It makes it so much easier not having to worry about that aspect during an IRS audit. Agreed! What goes around comes around I always say...and while it's super easy to 'get away' with not paying your fair share.....Eventually it will bite you in the ass. I feel confident with my clear conscious knowing we paid what we owed each and every year. Now that this law is here, it is business as normal here, while others are scrambling to come up with the cash they'll need, or the help they'll need to file extensions. Food for thought, do things properly!! Pay your taxes!!! (WE ALL HATE THEM) but we all gotta pay them. Paypal at the moment states that more than 20% of their accounts have not input their identification numbers as of yet to comply with the law. (Forbes) Link to comment Share on other sites More sharing options...
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