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Thread: Watch out for the IRS ! - New Methods and Regs may be coming.

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    Default Watch out for the IRS ! - New Methods and Regs may be coming.

    Not sure if this should go here or in Dollar Den. I leave it to the Mod's discretion.
    Biden wants to hire some 200,000 new IRS agents and change bank reporting requirements so that any transaction over $600 would have to be reported to the IRS and entitle the Feds to make inquiries.
    My question is addressed to those who use PayPal , Cash App , Venmo etc. to accept payments and deposits. Could the IRS track you through those apps and measure your funds intake against your tax returns ? I don't know . I've sent but never received wink wink.
    If the answer is YES then what is your Plan B ? A mail drop , what the Brits call an "accommodation address " ? Have your custies Fed Ex you cash ?
    A
    The credit belongs to the man who is actually in the arena... who, at the best, knows in the end the triumph of high achievement, and who, at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those timid souls who know neither.
    Teddy Roosevelt

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    That old man needs to go away and not screw my life up. UGH. He's gonna make my life more difficult but it's still manageable LOLLLLL. Just more bank trips. We desperately need a woman as president to test out how the world would improve compared to a man in charge.

    Some IRS workers have sympathy. When my grandpa was alive and living out of his car in his 80's they were trying to get him for not filing taxes for 4 years while he was living in his car. The agent told him there must be a mistake and ended the call.

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    I just take every deduction available to me and then pay the damn taxes down to the penny I owe. I don't need that kind of aggravation.

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    Quote Originally Posted by Eric Stoner View Post
    Not sure if this should go here or in Dollar Den. I leave it to the Mod's discretion.
    Biden wants to hire some 200,000 new IRS agents and change bank reporting requirements so that any transaction over $600 would have to be reported to the IRS and entitle the Feds to make inquiries.
    My question is addressed to those who use PayPal , Cash App , Venmo etc. to accept payments and deposits. Could the IRS track you through those apps and measure your funds intake against your tax returns ? I don't know . I've sent but never received wink wink.
    If the answer is YES then what is your Plan B ? A mail drop , what the Brits call an "accommodation address " ? Have your custies Fed Ex you cash ?
    If it's 600 per transaction then it seems the easiest way would just to cash out multiple times and not let it build up.

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    Quote Originally Posted by SuperPookie View Post
    If it's 600 per transaction then it seems the easiest way would just to cash out multiple times and not let it build up.
    I thought the same thing. but I'm not sure exactly how the reporting would work. If it's $600 per day ... or multiple transactions would act as a trigger then who knows ?
    A
    The credit belongs to the man who is actually in the arena... who, at the best, knows in the end the triumph of high achievement, and who, at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those timid souls who know neither.
    Teddy Roosevelt

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    Holy shit. That seems like a waste of resources and time. I understand questioning a random $10,000 deposit, that's quite a lot of money to come up with out of the blue. But $600 could be anything.

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    Quote Originally Posted by trustfundkiller View Post
    Holy shit. That seems like a waste of resources and time. I understand questioning a random $10,000 deposit, that's quite a lot of money to come up with out of the blue. But $600 could be anything.
    Pretty near everyone who gets a paycheck

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    31 U.S. Code 5324 - Structuring transactions to evade reporting requirement prohibited
    prev | next
    (a) Domestic Coin and Currency Transactions Involving Financial Institutions.—No person shall, for the purpose of evading the reporting requirements of section 5313(a) or 5325 or any regulation prescribed under any such section, the reporting or recordkeeping requirements imposed by any order issued under section 5326, or the recordkeeping requirements imposed by any regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law 91–508—
    (1)
    cause or attempt to cause a domestic financial institution to fail to file a report required under section 5313(a) or 5325 or any regulation prescribed under any such section, to file a report or to maintain a record required by an order issued under section 5326, or to maintain a record required pursuant to any regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law 91–508;
    (2)
    cause or attempt to cause a domestic financial institution to file a report required under section 5313(a) or 5325 or any regulation prescribed under any such section, to file a report or to maintain a record required by any order issued under section 5326, or to maintain a record required pursuant to any regulation prescribed under section 5326, or to maintain a record required pursuant to any regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law 91–508, that contains a material omission or misstatement of fact; or
    (3)
    structure or assist in structuring, or attempt to structure or assist in structuring, any transaction with one or more domestic financial institutions.
    (b) Domestic Coin and Currency Transactions Involving Nonfinancial Trades or Businesses.—No person shall, for the purpose of evading the report requirements of section 5331 or any regulation prescribed under such section—
    (1)
    cause or attempt to cause a nonfinancial trade or business to fail to file a report required under section 5331 or any regulation prescribed under such section;
    (2)
    cause or attempt to cause a nonfinancial trade or business to file a report required under section 5331 or any regulation prescribed under such section that contains a material omission or misstatement of fact; or
    (3)
    structure or assist in structuring, or attempt to structure or assist in structuring, any transaction with 1 or more nonfinancial trades or businesses.
    (c) International Monetary Instrument Transactions.—No person shall, for the purpose of evading the reporting requirements of section 5316—
    (1)
    fail to file a report required by section 5316, or cause or attempt to cause a person to fail to file such a report;
    (2)
    file or cause or attempt to cause a person to file a report required under section 5316 that contains a material omission or misstatement of fact; or
    (3)
    structure or assist in structuring, or attempt to structure or assist in structuring, any importation or exportation of monetary instruments.
    (d) Criminal Penalty.—
    (1) In general.—
    Whoever violates this section shall be fined in accordance with title 18, United States Code, imprisoned for not more than 5 years, or both.
    (2) Enhanced penalty for aggravated cases.—
    Whoever violates this section while violating another law of the United States or as part of a pattern of any illegal activity involving more than $100,000 in a 12-month period shall be fined twice the amount provided in subsection (b)(3) or (c)(3) (as the case may be) of section 3571 of title 18, United States Code, imprisoned for not more than 10 years, or both.
    (Added Pub. L. 99–570, title I,  1354(a), Oct. 27, 1986, 100 Stat. 3207–22; amended Pub. L. 102–550, title XV,  1517(a), 1525(a), 1535(a)(1), Oct. 28, 1992, 106 Stat. 4059, 4064, 4066; Pub. L. 103–322, title XXXIII,  330017(a)(2), Sept. 13, 1994, 108 Stat. 2149; Pub. L. 103–325, title IV,  411(a), 413(a)(2), Sept. 23, 1994, 108 Stat. 2253, 2254; Pub. L. 107–56, title III,  353(c), 365(b)(1), (2)(A), Oct. 26, 2001, 115 Stat. 323, 334, 335; Pub. L. 108–458, title VI,  6203(g), Dec. 17, 2004, 118 Stat. 3747.)

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    I was very worried about this new IRS funding as well.

    Even for those of us who file taxes and pay, it would be hell to be audited and questioned about your expenses and earnings in the adult industry. I’ve been depositing and declaring my money for years, first as a sole proprietor and now as an s Corp. But it’s mostly cash and without invoices.

    If IRS is granted additional funding, OF COURSE they are going to harass people like us. Majority of us do not make 400,000/yr but we do well. It’s also probably going to target other small businesses, just trying to make a living.

    The potential extra policing is definitely very scary.

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    Someone else had said it isn't $600 per transaction but $600 yearly which is a big frigging difference. I am going to do what I should have done to begin with which is to go look it up lol.

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    What they need to do is use that extra funding to pinch all the folks getting unemployment during the pandemic while actually still working! I know quite a few.

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    Wtffff. Thanks so much for sharing. Mannn, these legislative moves are so violent and littered with anti-poor, anti-whore, drug war, and racist implications I hate it hereeeee.

    To answer your question, yes. 100 percent. The IRS does track funds moved through Paypal, Cash App and Venmo. A friend of mine was audited by the IRS recently for her Venmo transactions. What seems to have triggered the administrations' attention for her were a series of recurring payments of the same amount over a long period of time (weed sales).

    Stay safe everyone. Fuck the police ��

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    The Biden Administration says passage will result in some $500 billion a year in additional collections. An alternate proposal to the $600 per transaction is an annual total of $10,000 or more.

    I would advise having a Plan B in case this comes to pass. Cash can be FedExed to both real addresses and mail drops. Unless you like talking to the IRS and having them know your business.
    A
    The credit belongs to the man who is actually in the arena... who, at the best, knows in the end the triumph of high achievement, and who, at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those timid souls who know neither.
    Teddy Roosevelt

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    There's too many people in the US for them to "get" everyone IMO. They've been scaring ppl for years with these tactics. Pull your money right out of the bank as soon as you receive it? I dunno.
    Kinda sucks though bc if this did actually come to fruition then it'd be almost impossible to avoid it if you are getting direct deposits weekly.
    "Alot of people are afraid to say what they want, that's why they don't get what they want"~ Madonna




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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    Quote Originally Posted by caker View Post
    Wtffff. Thanks so much for sharing. Mannn, these legislative moves are so violent and littered with anti-poor, anti-whore, drug war, and racist implications I hate it hereeeee.

    To answer your question, yes. 100 percent. The IRS does track funds moved through Paypal, Cash App and Venmo. A friend of mine was audited by the IRS recently for her Venmo transactions. What seems to have triggered the administrations' attention for her were a series of recurring payments of the same amount over a long period of time (weed sales).

    Stay safe everyone. Fuck the police ��
    What triggered them auditing her was most likely she got over $600 in a calendar year (a.k.a a 1099) & didn't report it? That's the only time I thought that triggered them?
    "Alot of people are afraid to say what they want, that's why they don't get what they want"~ Madonna




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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    https://www.wxyz.com/money/new-irs-r...fect-next-year

    Wonderful *eyeroll* I needed this to receive an easy payment when my roommate pays me 900 for rent. Now she's gotta get a cashiers check. I thought this was up for debate for some reason.
    Last edited by indiegirl; 10-13-2021 at 06:18 PM.

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    Quote Originally Posted by indiegirl View Post
    https://www.wxyz.com/money/new-irs-r...fect-next-year

    Wonderful *eyeroll* I needed this to receive an easy payment when my roommate pays me 900 for rent. Now she's gotta get a cashiers check. I thought this was up for debate for some reason.
    Thank you so much "Indie". This answers one of the big questions I had about tracking the various apps that people use.
    A
    The credit belongs to the man who is actually in the arena... who, at the best, knows in the end the triumph of high achievement, and who, at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those timid souls who know neither.
    Teddy Roosevelt

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    Quote Originally Posted by slowpoke View Post
    Pretty near everyone who gets a paycheck
    I would think that it only applies to cash deposits. Otherwise they would have to report probably every full-time worker in the US.

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    It looks like it would be all transactions for bank accounts with balances above $600, but the figure isn't set in stone. Some media reports have indicated it could be increased to, say, $10,000 — the level at which banks report transactions in an effort to combat money laundering.

    https://www.azcentral.com/story/mone...ts/6052734001/

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    Quote Originally Posted by eagle2 View Post
    I would think that it only applies to cash deposits. Otherwise they would have to report probably every full-time worker in the US.
    I am sorry but the proposal is very clear. Banks will have to report any TRANSACTION over $600. That is deposits, withdrawals , payments and transfers. There are proposals to raise the reporting threshold but the figures being suggested are $1000 to $2000.
    A
    The credit belongs to the man who is actually in the arena... who, at the best, knows in the end the triumph of high achievement, and who, at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those timid souls who know neither.
    Teddy Roosevelt

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    Quote Originally Posted by eagle2 View Post
    It looks like it would be all transactions for bank accounts with balances above $600, but the figure isn't set in stone. Some media reports have indicated it could be increased to, say, $10,000 — the level at which banks report transactions in an effort to combat money laundering.

    https://www.azcentral.com/story/mone...ts/6052734001/
    If they raise the threshold to $10,000 that would mean NO Change to current law.
    A
    The credit belongs to the man who is actually in the arena... who, at the best, knows in the end the triumph of high achievement, and who, at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those timid souls who know neither.
    Teddy Roosevelt

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    I think what they're proposing, goes by the account balance, not the transaction amount. If you have a bank account with a balance > $600 or $10,000 or whatever they decide on, then the bank would report all transactions, not transaction amount.

    From the article I linked to:
    The proposal would require banks, credit unions and other financial companies to monitor deposits and withdrawals in accounts that have balances above $600 at any time during the year. That would include the vast majority of personal and small-business accounts.

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    I saw one member of Congress discussing this. He said that all the banks would be doing is, at the end of the year, the banks would report the total dollar amount of deposits and withdrawals made to and from the bank account.

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    Quote Originally Posted by eagle2 View Post
    I saw one member of Congress discussing this. He said that all the banks would be doing is, at the end of the year, the banks would report the total dollar amount of deposits and withdrawals made to and from the bank account.
    Possibly. Congress is not deaf. I think they heard and listened to how unpopular this PROPOSAL is across the entire spectrum. Now they are floating various proposals. Some based on bank balances as opposed to transactions.
    A
    The credit belongs to the man who is actually in the arena... who, at the best, knows in the end the triumph of high achievement, and who, at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those timid souls who know neither.
    Teddy Roosevelt

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    Default Re: Watch out for the IRS ! - New Methods and Regs may be coming.

    Hmmm. The consensus seems to be firming around a proposal to focus on accounts with balances over $ 10,000. That will entitle the IRS to ask the account holder about all transactions related thereto.
    A
    The credit belongs to the man who is actually in the arena... who, at the best, knows in the end the triumph of high achievement, and who, at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those timid souls who know neither.
    Teddy Roosevelt

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