Is anyone really dumb enough to think the Democrats are just after the rich folks money? Hiring an army of additional IRS agents, making banks report every transaction over $600? That is clearly aimed at targeting regular folks!
Withdraw your paycheck into cash. It's what I do. It really helps with budgeting. It's very easy to tap your card, but you sure notice a $50 note coming out of your wallet.
Once there was no income tax. Once the income tax was 1% and 3% for the wealthy. Once only you reported the bank interest paid to you. Once no state had an income tax. Once Florida had no sales tax, then they had 3%, now it's up to 6%. See the trend. See the trend climb. See the politicians getting rich. Where will it end?
and once land was free in Oklahoma. Top income tax rate was over 90% in the early 1950's and was above 70% from 1950 to 1970. and is now 37% Things change over time.
You DO realize Congress is made up of Dems AND Repubs, right? You also realize the WH is a revolving door when it comes to who occupies it, right? Meaning Dem, then a Repub, then a Dem, then a Repub, then a Dem, then a Repub....well...you see where this is going, right? Allllllllrighty then.
I can't speak for the Democrats, but I think informed people know what the intent was. It was never exclusively for rich folks money. IRS added new employees because they intend to collect the $600 Billion, which is owed, but not collected each year. That's a lot of money, and would be a big help getting towards more balanced revenue vs spending. The $600 rule (which was not implemented) was for people who collect payments via PayPal, Venmo, Cash App, also report it as income. Such payments often went unreported.
I don't think you understand this. The regulations are for the 1099-K with companies like PayPal, Ebay, Cashapp, World Remit, and others. But those regulations have been delayed. This was part of the JCTA that was to take effect in 2020 This is part of the e-commerce problem that is growing. Add to the fact that there are people who only report income if it only comes on an information return does not comply with IRC 61. For all the other types of 1099s, and there are quite a few, the $600 threshold was already been there and has been since 1986 under the TRA 1986 act. If you receive $600 or more in rents, royalties, interest, dividends, capital gain distributions, and other types of payments, in the second link below, shows the requirements. Finally, this is about reporting. Audits are a separate matter and may not involve information returns unless it is an information return audit. And that is for those big companies that issue them BTW. https://www.kiplinger.com/taxes/irs...ld for 2022,that $20,000 threshold will apply. https://www.irs.gov/forms-pubs/about-form-1099-misc
You will still get the W2 or 1099-NEC if it is $600 or more. The only thing you are doing is paying a 3% fee to cash that checks if it is not your bank. and then there is another reporting requirement is the cash out is $10k or more. And that is filed by the Bank in most circumstances.
It has more to do with E-commerce and the growing e-commerce. If a person uses one of those apps for gifts to family or friends, then no such reporting will be issued. That's the complexity. The rule in question where the old rule was 200 or more transactions and $20,000 or more in paid goods and services was for 1099-K only. The other 1099 forms always had the $600 or more threshold if it is rent, royalties, nonemployee compensation, attorney fees, etc.
Who pushed the idea? Who sponsored the bill. Don’t get me wrong, I do know both parties are colluding to fleece all of us!
They don't get any information on your purchases though, they just see you've withdrawn cash. Still not ideal, but a heck of a lot better than using tap and pay for all your purchases. Good tip, always withdraw at your own bank so you pay no fee. In some jurisdictions it's legal to be paid in cash. They still report your income, but it sure is nice to get an envelope every week.
