Paypal and the IRS

Joined
Mar 14, 2008
Messages
340
Location
Ventura County, So Cal
Interesting article on Paypal and other online payment services being required to report gross sales amounts and # of transactions to the IRS.... :frown:

http://smartblogs.com/finance/2011/...ellers-—-a-q-and-a-with-paypal’s-eddie-davis/

Fortunately it seems to only apply to sellers with greater than $20,000.00 in receipts AND 200 or more transactions during the course of the year, which should eliminate most of us here.

I'm pretty sure if it works out well for the IRS, they will lower the thresholds in the future.
 
Joined
Jan 6, 2011
Messages
1,476
Location
SE USA
Nothing is really new, you have always been required to report all of your income on your tax return. This, however, may have the effect of increasing the number of accurate returns.
 
Joined
Mar 14, 2008
Messages
340
Location
Ventura County, So Cal
Very good. Somebody selling that much obviously runs a business and should pay taxes on the income like everybody else.

I fully agree on paying taxes on income earned.

If the thresholds get lowered significantly it may affect hobbyists like some of us here. I would hate to have to keep records of my cost basis on every piece of photo or motorcycle equipment I bought to satisfy the IRS if/when I sell it.

I have a motorcycle I'm parting out (more valuable than selling it whole). I will likely go over the 200 transaction threshold but not the $20,000.00 dollar threshold this year. I guess I better keep a spread sheet just in case.
 
Joined
Dec 26, 2010
Messages
5,725
Location
Annapolis
Nothing is really new, you have always been required to report all of your income on your tax return. This, however, may have the effect of increasing the number of accurate returns.

I have to agree. Not sure why so many people get bent out of shape over the fact they should be declaring the extra income anyway. If they are making a profit they should pay tax on it, if not they should declare it as a loss. Paper trails are great!
 
Joined
Nov 10, 2008
Messages
3,969
Location
Chicago
I am for closing loopholes and lowering the overall tax rates.

Hear about General Electric? Made almost $15 billion with a B and paid no taxes.

Actually business should pay no taxes at all, as profits distributed as dividends or capital gains, end up getting taxed twice. But as long as we have the system we have, everyone should pay their fair share.

There is no reason for an income tax structure like we have except to grant favors to certain people/industries.
 
Joined
Aug 12, 2005
Messages
2,228
Location
Broussard, LA, USA
I am sorry, but anyone who takes chances not being honest with their taxes is gonna wish they did when the IRS catches up to them.
I am not against taxes, because I want roads and bridges repaired, police and fire protection, drainage, schools and everything else taxes pay for. I ay my fair share, and expect everyone else to claim their purchases. I file use tax forms or out of state purchases and claim all my fair deductions.
Now I don't know what to do about the corporate tax rates, like GE taking a loss, but there are lots of corporations who are abusing tax laws by claiming to be based overseas, when most of their business is here in the US.
 
B

Bill N

Guest
I am sorry, but anyone who takes chances not being honest with their taxes is gonna wish they did when the IRS catches up to them.
I am not against taxes, because I want roads and bridges repaired, police and fire protection, drainage, schools and everything else taxes pay for. I ay my fair share, and expect everyone else to claim their purchases. I file use tax forms or out of state purchases and claim all my fair deductions.
Now I don't know what to do about the corporate tax rates, like GE taking a loss, but there are lots of corporations who are abusing tax laws by claiming to be based overseas, when most of their business is here in the US.

I agree with you 100%, Chris!! I will add that not only would I like to see all pay their fair share I would just love to see those who spend our tax money do it in a responsible manner!! We can only hope.
 
Joined
Aug 12, 2005
Messages
2,228
Location
Broussard, LA, USA
I just finished watching 60 Minutes, a news show. They showed Zug, Switzerland, Ireland and other places which have offices for 30,000 American compnaies who are evading taxes by having offices overseas.

I say drop the tax rate for corporations to 10%, but only for companies who have ALL of their production, holdings and employees here in the US, for products sold in the US.
 
Joined
Dec 26, 2010
Messages
5,725
Location
Annapolis
I just finished watching 60 Minutes, a news show. They showed Zug, Switzerland, Ireland and other places which have offices for 30,000 American compnaies who are evading taxes by having offices overseas.

I say drop the tax rate for corporations to 10%, but only for companies who have ALL of their production, holdings and employees here in the US, for products sold in the US.

That was a good piece! Amazing how many loopholes companies have. I don't believe that dropping the tax rate for these companies would be enough incentive to bring them back. You can make them tax exempt and they would still find a better deal elsewhere. It does put a tear in my eye when I think of the tax bracket I'm in and these companies are getting away Scot free. The issue is somebody has to pay tax. I just don't feel the individual should have the sole burden.
 
B

Bill N

Guest
That was a good piece! Amazing how many loopholes companies have. I don't believe that dropping the tax rate for these companies would be enough incentive to bring them back. You can make them tax exempt and they would still find a better deal elsewhere. It does put a tear in my eye when I think of the tax bracket I'm in and these companies are getting away Scot free. The issue is somebody has to pay tax. I just don't feel the individual should have the sole burden.

I think one of the only ways to solve the above problem is to remove those that wrote / those who stand in the way of removing these loopholes.
 
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