1099-K issues

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MZB

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Dec 21, 2021, 11:02:22 AM12/21/21
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PayPal now issues a 1099-K (in 2022) if you move > $600 into your
account (they assume you are now in the business of selling
goods/services).

If instead money is transferred directly into a bank account, will banks
be doing the same thing? I see all kinds of headaches here.

Mel

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MZB

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Dec 27, 2021, 10:20:05 PM12/27/21
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On 12/21/2021 11:00 AM, MZB wrote:
> PayPal now issues a 1099-K (in 2022) if you move > $600 into your
> account (they assume you are now in the business of selling
> goods/services).
>
> If instead money is transferred directly into a bank account, will banks
> be doing the same thing? I see all kinds of headaches here.
>
> Mel
>
BUMP--anybody??

ira smilovitz

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Dec 27, 2021, 11:30:36 PM12/27/21
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On Monday, December 27, 2021 at 10:20:05 PM UTC-5, MZB wrote:
> On 12/21/2021 11:00 AM, MZB wrote:
> > PayPal now issues a 1099-K (in 2022) if you move > $600 into your
> > account (they assume you are now in the business of selling
> > goods/services).
> >
> > If instead money is transferred directly into a bank account, will banks
> > be doing the same thing? I see all kinds of headaches here.
> >
> > Mel
> >
> BUMP--anybody??
> --

If Paypal isn't the bank holding the funds at the start or end of the transaction, it will be subject to 1099-K reporting. Since PayPal isn't a bank they are a third party processor.

Ira Smilovitz, EA
Leonia, NJ

MZB

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Dec 28, 2021, 10:55:38 PM12/28/21
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On 12/27/2021 11:29 PM, ira smilovitz wrote:
> On Monday, December 27, 2021 at 10:20:05 PM UTC-5, MZB wrote:
>> On 12/21/2021 11:00 AM, MZB wrote:
>>> PayPal now issues a 1099-K (in 2022) if you move > $600 into your
>>> account (they assume you are now in the business of selling
>>> goods/services).
>>>
>>> If instead money is transferred directly into a bank account, will banks
>>> be doing the same thing? I see all kinds of headaches here.
>>>
>>> Mel
>>>
>> BUMP--anybody??
>> --
>
> If Paypal isn't the bank holding the funds at the start or end of the transaction, it will be subject to 1099-K reporting. Since PayPal isn't a bank they are a third party processor.
> g PayPal
> Ira Smilovitz, EA
> Leonia, NJ
>
Are you saying that if Paypal moves money from Paypal to my bank this is
also a 1099-K transaction (assuming totality is > $600 in 2022)?

So I have to add funds going into Paypal and leaving PayPal to my bank?

Hardly worth dealing with PayPal. Too many possible/probable IRS
hassles. What about Coinbase to my bank (BTC investments and I would
declare capital gains/losses)

Mel

ira smilovitz

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Dec 29, 2021, 11:32:05 AM12/29/21
to
On Tuesday, December 28, 2021 at 10:55:38 PM UTC-5, MZB wrote:
> On 12/27/2021 11:29 PM, ira smilovitz wrote:
> > On Monday, December 27, 2021 at 10:20:05 PM UTC-5, MZB wrote:
> >> On 12/21/2021 11:00 AM, MZB wrote:
> >>> PayPal now issues a 1099-K (in 2022) if you move > $600 into your
> >>> account (they assume you are now in the business of selling
> >>> goods/services).
> >>>
> >>> If instead money is transferred directly into a bank account, will banks
> >>> be doing the same thing? I see all kinds of headaches here.
> >>>
> >>> Mel
> >>>
> >> BUMP--anybody??
> >> --
> >
> > If Paypal isn't the bank holding the funds at the start or end of the transaction, it will be subject to 1099-K reporting. Since PayPal isn't a bank they are a third party processor.
> > g PayPal
> > Ira Smilovitz, EA
> > Leonia, NJ
> >
> Are you saying that if Paypal moves money from Paypal to my bank this is
> also a 1099-K transaction (assuming totality is > $600 in 2022)?
>
> So I have to add funds going into Paypal and leaving PayPal to my bank?
>
> Hardly worth dealing with PayPal. Too many possible/probable IRS
> hassles. What about Coinbase to my bank (BTC investments and I would
> declare capital gains/losses)
>
> Mel
> --

Crypto transactions are more likely to generate IRS interactions than 1099-K transactions. The IRS is already looking closely at crypto (note the check box at the top of Form 1040) and 1099-B reporting begins in 2023. The IRS knows that 1099-Ks report more than just income transactions, so it isn't clear exactly how they will use the information they provide.

Ira Smilovitz, EA
Leonia, NJ

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