A long time coming but the IRS is now monitoring the internet...the last I heard it was all the payment venues such as Paypal & Epay but heard it was going to get more intensive in the future...a 1099K is now being required for over a certain $ amount of payment activity but the $ amount could lower at any time.....the Ebay community was in quite a frinzey over this new action & I for one have talked to some Ebayers in my community who were notified by Paypal of a 1099K being sent to them...some of those I have talked to have actually quit selling on Ebay altogether due to this action...my bookkeeper told me that the IRS could go back 10 years on violators and hard telling what the state could do to a person who didn't pay the sales tax due..
I do realize that having a shop on ruby lane is a business & I run it as such, the IRS would not see it as anything other that that...I always wondered why Ruby Lane didn't require a sales tax # nor a FEIN # when I opened my shop as our tax # was always required when we did antique shows years ago....
I was just wondering what thoughts you have on this new action by the IRS and how you think it will effect the internet business community & Ruby Lane.....
You live, die and pay taxes. Oldest phrase in history.
It is worth noting that smaller merchants are exempt from the reporting requirements. Payment service providers must submit 1099-K forms only for sellers with $20,000 in annual revenue and 200 transactions in the calendar year. Both conditions must be met to trigger the reporting requirement.
In its initial rollout for the 2011 tax year, the IRS is directing merchants to enter a zero on the new 1099-K line on their business returns, making the gross revenue reconciliation less of an issue, for now.
Good! If people are quitting ebay because they want to hide their income and avoid paying their fair share of taxes, then let them. If the IRS wants to go back 10 years on me, let them. I have the Quickbooks files, I have the backup paperwork. I've been reporting my income and paying taxes on it since I went from the casual seller getting rid of a few things online to doing this as a business.
I'm right with you "mainly glass"....geee, I have quickbooks too, love that program!! the irs needs to go after the ones who hide what they are doing...with the internet nowadays, its getting harder for them to do that...
They'll have to quit selling online altogether, because the new requirements apply to all online payment processors and all selling venues. I didn't know about that zero thing - we're below the threshold anyway and DH already did our taxes.