New Ebay Tax Requirement/Form For 2022 - USA Sellers

Yup. In short, it's income. Less traceable, but technically should be reported as income.

https://www.irs.gov/newsroom/four-t...f-you-barter

Ken-Up to the consignor.

Not true.




Debit cards and the like are not third party networks.

This type issue has just put me through the cleaners in Australia from ebay reporting. The gov instantly classed me as fraudulent and needed the book thrown at me. All for nothing.

Two different gov Dep took my income etc and twisted it and turned it from May 2021 to Jan 2022 and they got nothing but that I had done the right thing. My whole file had to be rewritten because there was so many gov mistakes on it in black and white. False witness is ugly when it is exposed!

It cost me a fair bit and destroyed relationships. Trying to move on now but the a cost has been horrendous!

Correct. However, that income still gets reported, just that the threshold to trigger reporting is (currently) higher: $20,000 in aggregate received payments per year rather than $600. You said you were paying an auction house. Any auction house is going to easily hit that $20,000 threshold, so I still don't understand how shifting your payment from PayPal to debit card does anything. To an individual, sure it could have an impact, but for any substantive business entity, it's not going to make a difference.

Also, for anyone thinking that accepting payment card payments can sustain non-reporting via the higher threshold, it also depends on which state you reside in. Several states have set much lower annual thresholds to trigger reporting than the federal $20,000 threshold. It's currently 6 states plus the District of Columbia, but additional states have similar legislation in the works.

District of Columbia: $600 per year
Illinois: $1,000
Maryland: $600
Massachusetts: $600
Missouri: $1,200
Vermont: $600
Virginia: $600

https://squareup.com/help/us/en/art...9-k-overview

One of the more memorable events in June 2021 I was integrated for 1hr 30mins as if I was in a court room. Walked away totally smashed but there was nothing to expose. So they got nothing which just made them even more angry and more convinced I was fraudulent. It was just a never ending circle.

The IRS has been on that for years ruling that the VALUE of the item or service received in the barter is considered taxable income at that value.

About all that is left is to follow the illegal drug trade and sell stamps hand to hand in cash on street corners--unless of course those sellers self report their income as required by the IRS.

You can't get prosecuted for looting a Nieman-Marcus now but don't try to evade that ebay sales reporting.

Hey don't start bashing my other side line business! LOL

My experience with barter/IRS goes back a few years and involves a local barter system which operated only between brick and mortar business owners. For the first four years things rocked along and the barter service got larger and larger. Then a local TV station got wind of it and aired a story on it. It was not a 'hit piece' but rather just a local news piece which touted how great it was... that was it. The IRS and state tax people came knocking within a few weeks and they were forced to implement the appropriate taxation. The state tax people were much more aggressive than the IRS.

In my opinion, if the system were to use a fantasy "Stamp Smarter Scheckel" as currency and if it were remain relatively small, it would represent 'more work than it is worth' to come after it (by using a fantasy currency calculating 'value' becomes a much larger time suck for the taxman). But it certainly is a risk and the understanding would be that the system might one day come under the scrutiny of the tax man.

I have two issues with investing my time in something like this; first is the jerks in out hobby. The 'know it alls' who have a grudge and would not think twice in trying to take down the work which a system like this represents. Second is the ethical issue of dodging taxes. Staying under the radar does not make it right nor does the perspective 'everyone dodges taxes'. Real business owners, those who are setup with the IRS as a business, should not have to shoulder the tax burden while 'wannabe dealers' skate. So a system like I imagine would be only for true hobbyists looking to only barter a few things each month. No 'stores' or unlimited listings, there would be a cap on the number of transaction or "Stamp Smarter Scheckels".

But given these issues and the feedback in this thread, this idea is best left for day dreaming.
Don

Internet fantasy currencies were ignored until they had "real value" at which time the taxing agencies got involved. Your SSS (S-cubed coin) likely has just as much intended value now as did the other "internet currencies" when created. Then the joke turn as values shot through the $1, $100, $1000 and $50,000 ceilings. Perhaps a faction of a SSS will be enough to trade for a mint US C3a in a few months.

I saw a cartoon decades ago, making fun of the 'new' simplified IRS regulations. I guy is sitting at his desk on (probably) April 14th reading over the tax form. It says "How much did you make last year?" "Send it in."

Could be worse. Think about the tax hurdles an enterprising twelve year old has to go through if they earn $1,200 in a summer mowing yards. And then there is the OHSA safety requirements, and local permit requirements, and ..

Everybody wants a piece of someone else's pie for free. Is there any free left in free enterprise anymore.

T.A.N.S.T.A.A.F.L. There ain't no such thing as a free lunch.

The Good News is apparently I'm in the top 1% and didn't even know it!