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Pillar Of The Community
United States
1163 Posts |
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this is from Forbes:
And while this rule applies to most third-party payment networks, Zelle said it's not subject to this law.
Early Warning Services, LLC, the network operator of Zelle, said in an email statement that Zelle doesn't settle funds but rather provides messaging between a financial institution and people making the payments.
Here is info straight from the Zelle site.
Does Zelle® report how much money I receive to the IRS?
Zelle® does not report transactions made on the Zelle Network® to the IRS. The law requiring certain payment networks to provide forms 1099K for information reporting does not apply to the Zelle Network®.
Does Zelle® tax me on money that I receive?
Zelle® is a payment platform. Zelle® does not impose taxes on transactions made on its network. If payments you receive on the Zelle Network® are taxable, it is your responsibility to report them to the IRS. If you have any questions about your tax obligations, please consult with a tax professional.
Will Zelle send me a 1099K form?
Zelle® does not issue 1099K forms for payments made on the Zelle Network®.
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Michael Darabaris |
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Pillar Of The Community
United States
880 Posts |
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re: Zelle I, personally, would not bet on Zelle being able to elude these reporting requirements for very long...  The company is based in Arizona, USA. They can blather all day long about what services they provide, and what they are responsible for, but when the G-Men come after them, they'll quickly change their tune. John |
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Moderator
United States
12330 Posts |
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Zelle is owned by seven of America's largest banks (Bank of America, BB&T, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank and Wells Fargo) and these companies have a LOT of influence in Washington.
Don |
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Pillar Of The Community
United States
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Quote:
...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"....
Don Yet more Russian sanctions come home to roost on the shoulders of Americans to help Ukrainians. Senator Warren seizes on fears over crypto and sanctions with new bill (3-9-22) If passed, Elizabeth Warren's new draft crypto bill will require local crypto exchanges to submit "detailed records" to the Treasury Department of customers' identities and transfers to private crypto wallets. https://cointelegraph.com/news/sena...ith-new-bill |
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Valued Member
146 Posts |
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Zelle is a bank to bank transaction as mentioned, but like a wire transfer, there are no 'take-backs', once the $$ goes out of the account, that's it. Card payments and Paypal/Venmo normally have some recourse. |
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Valued Member
United States
35 Posts |
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Hi, This article was just posted in the New York Times: I.R.S. Delays Tax Change for Users of Venmo and Other Digital Wallets Users who receive income through digital payments will have another year before having to comply with a new tax rule that had sowed confusion and concern. The Internal Revenue Service said on Friday that it is delaying by one year a new tax policy that will require users of digital wallets and e-commerce platforms to start reporting small transactions to the tax collection agency. I am not particularly savvy with taxes and business principles, however since I sold more than $600 on ebay this year, does this mean I will not have a 1099 as they have previously indicated? |
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Bedrock Of The Community
12569 Posts |
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You will not receive a 1099-K triggered by the TPP $600 threshold. Previous requirements still stand. |
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Pillar Of The Community
United States
4308 Posts |
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Alas, it is only a one year delay for folks to prepare during 2023 for the 1099-K which will be issued for that year at the $600 level. Now you have no excuse to claim not record keeping when audited about 2023 1099-K reported so called income. There was a bipartisan attempt to raise the limit to $10,000 but that failed. |
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Valued Member
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There are a couple bills in Congress to increase the $600 limit. I'd suggest that there is no guarantee for 2023 that the $600 threshold will remain, but obviously would be a good idea to plan on received a 1099-K
Does this mean will see a huge surge in online listings before the end of the month?? :-) |
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Moderator
United States
12330 Posts |
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I am thinking that they will not implement this for 2024 (election year) either.
Don |
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Pillar Of The Community
United States
1163 Posts |
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The record keeping issue will not go away. How many collectors who bought items 20-30 years ago or people selling their parents basement or garage stuff has records for a cost basis? My parents had no idea of what their stuff cost and I had to get them money for their move to a retirement home. This level is way too low. Who is going to go through all that and then have to pay taxes on it and worry about being audited? If you are a business then yes you should be keeping records but what business is out there with income of only around $600/yr? IRS does not consider them a business but treats them as one. There has to be a better solution. |
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Michael Darabaris |
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Pillar Of The Community
United States
4308 Posts |
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I doubt it will go away, there is just too much revenue producing content on the internet, be it pay per view, pay to play, sales of all manner of objects and the like. In our world of stamps, location of money sent for folks selling counterfeit Forever Stamps, would be handy information for investigators. So how I don't see someone knowingly selling counterfeits being too concerned with declaring that income. |
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Pillar Of The Community
United States
898 Posts |
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Pillar Of The Community
United States
898 Posts |
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And I think Don may well be right that they won't do this in 2024 either.
Perhaps some ameliorating legislation by then. |
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Replies: 74 / Views: 5,997 |
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Posted 03/15/2022 08:52 am
