Nov. 25, 2023 - Epoch Times
08:47
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| Today is Black Friday, and because of that, you have millions of Americans across the whole country who are spending the day sitting in front of their computers, rubbing their hands like this, looking for those sweet, sweet deals. | |
| However, unbeknownst to them, there are thousands of IRS agents who are likewise sitting in front of their government-issued computers, also rubbing their hands together, thinking about all the new money they'll be able to shake down from the American taxpayer. | |
| That's because, starting this year, a new IRS rule goes into effect requiring that, earlier, the threshold of gross sales was over $20,000. | |
| Meaning that previously, if you sold a few things on Amazon or on eBay, it wouldn't really matter. | |
| It would be treated the same as if you were running a small garage sale to sell off a few items, and that would be it. | |
| Previously, you would have had to sell $20,000 worth of goods before getting a 1099 tax form. | |
| However, starting this year, if you happen to be an American who made a little side income by selling things online, or by doing some freelance work, or by shoveling your neighbor's snow, if you made more than $600, well, the IRS will now be putting you under the scope and forcing you to report that income as if it was an actual business venture. | |
| In fact, here is how the current Republican-led House Ways and Means Committee over in Congress described the general situation. | |
| Quote, Thanks to Democrats, more Americans who mow lawns or sell concert tickets and use couches through Venmo or PayPal will have those transactions scrutinized by the IRS starting in January of 2024. | |
| These additional tax forms are a New Year's nightmare for millions of Americans and a mess for the IRS. | |
| Now, the reason that many people are not aware of this rule change is because it was by design implemented essentially under the radar. | |
| In fact, this changing of the threshold from $20,000 down to $600, it was buried in the pages of the so-called American Rescue Plan, which was the $1.9 trillion economic stimulus bill go. | |
| It was also 242 pages long. | |
| And while at the time, Joe Biden promised that his new tax regime would not target anyone making over $400,000, it appears that in reality, working class Americans will be the ones to feel the brunt of this new change. | |
| "The policy to reduce the gross sales threshold from $20,000 to just $600 was included in the American Rescue Plan Act of 2021. | |
| According to the Joint Committee on Taxation, over 90% of this new tax burden will fall on middle-class families and gig workers who will be caught in the crosshairs of the Democrats' tax scheme." Furthermore, besides the added burden on working Americans, the way that this new tax scheme is being rolled out is about to create massive confusion for millions of Americans. | |
| That's because, according to a new report from the U.S. Government Accountability Office, you can see that report up on your screen, this new tax, it will result in tens of millions of additional 1099 forms being mailed out to tens of millions of Americans who are unaware of this new change, many of whom don't even know how to calculate their profit it will result in tens of millions of additional 1099 forms being mailed out to tens of millions of Americans who are unaware of this And all the while... | |
| The IRS doesn't actually have the necessary staff in place to handle 30 million more 1099 forms being sent out to Americans. | |
| Here's in fact how the government watchdog report, here's how they describe the situation. | |
| Quote, For example, Some of these taxpayers may not know how to calculate profit or loss and may therefore not understand the information reported on the form. | |
| This puts them at risk of inaccurately reporting their incomes to the IRS or not meeting their tax obligations. | |
| The IRS calculated that the new rule would result in 44 million Form 1099-Ks being filed in the year 2024, which is an increase of roughly 30 million. | |
| The tax agency does not have a plan to analyze this data to support its enforcement and outreach activities. | |
| The IRS lacks centralized leadership to make strategic decisions related to the use of information returns across the agency. | |
| Furthermore, in terms of how this will all actually work in practice, "People who engage in such side income activities have to provide personal information, including their social security number or their employer identification number, to the third-party app through which they conduct transactions, such as Venmo, Amazon, PayPal, etc. | |
| Once the transactions hit the $600 threshold limit, the third party will send a 1099-K to the individual. | |
| In case the person did not provide their personal information and the transaction hit the $600 limit, the third party app will withhold 24% of the payments collected via the app. | |
| This amount will be sent to the IRS and will not be returned to the individual. | |
| However, the amount can be reported on the person's tax returns. | |
| And then, if you happen to be one of the millions of Americans who will now be receiving one of these new tax forms, what you should know is that you don't necessarily owe money on whatever is written on the 1099 form. | |
| Instead, a 1099-K form is what's known as an information return form submitted by third parties like PayPal. | |
| Individual taxpayers can use these returns to complete their tax filings. | |
| The IRS uses these 1099-K forms to verify income and taxes reported by taxpayers. | |
| Meaning, in practical terms, that if you made $601 on Amazon this year, well, the 1099 form will inform the government of that fact and make it harder for you to not report it. | |
| And if all this makes you feel disheartened, it shouldn't. | |
| Because you should always remember that every single dollar that you spend on taxes will help to defend the Donbass region over in Ukraine. | |
| Without you, the Donbass region might be in Russian hands forever. | |
| So just keep that in mind when you're filling out your tax forms this upcoming year. | |
| Now, that was just a general overview of this new change to the tax rules. | |
| If this situation actually applies to you, and you'd like to go deeper into this change of IRS rules, how it works in practice, and what the actual changes will be in your tax liability, I'll throw several resources down into the description box below this video, including a few other videos from actual tax experts who help to explain this rule in including a few other videos from actual tax experts who help to explain this rule in And all I ask in return is that as you're making your way down there to those links, take a small detour to smash those like and subscribe buttons so that this content can be shared out to ever more people via the YouTube algorithm. | |
| Oh, it's the sponsor of today's episode, Patriot Mobile, which for the past 10 years now has been America's only Christian conservative wireless provider. | |
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| I'll also throw the link. | |
| It'll be down in the description box below. | |
| And then lastly, with Black Friday indeed upon us, I have a great deal to share with you. | |
| If you, or someone you know, is looking for a source of actual, honest, wholesome news, well, they can check out the Epoch Times. | |
| Right now we're running an awesome sale on subscriptions, just 25 cents a week for the whole year, which if you do the math, works itself out to just be a single dollar a month. | |
| And so if you're indeed looking for a source of honest news, including I should mention that I myself publish anywhere between 1 to 3 exclusive episodes of Facts Matter over on Epoch TV, usually on topics that are too spicy for YouTube. | |
| And so, if you'd like access to all those episodes, including a huge backlog from the last three years, as well as all the other great content over on the Epoch Times website, now's a great time to check it out. | |
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| Again, that link is right there at the top of the description box below. | |
| I hope you click on it, and I hope that you join us over at theepictimes.com. | |
| And then, until next time, I'm your host, Roman, from the Epoch Times. |
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