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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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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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??

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)

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

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)

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

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)

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

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)