1099s coming from paypal in 2011

If you do more than 200 transactions or 20k total on paypal in 2011 you will get a 1099 from them.

Just a heads up. Oh yeah, if either is true, you will have to record a EIN number on your account as well so the IRS can track it properly.

 

That's fine...it'll just ruin Paypals business. I'll stop using it.

 

Thanks Obama! Venom it's because of the "Health Care Reform" law. It'll ruin Paypal's business along with countless others. Good job Congress!

 

Unintended consequences. I doubt anyone gave it much thought.

 

Nothing unintended about it brother. They deliberately put in the "1099 if a transaction is worth more than $600" clause. If they didn't know that it would have a deletrious effect on business they're even more stupid than I thought. Well maybe they didn't know about it. They had to pass it to see what was in it right?

Honestly I don't really care much anymore. This nation is declining fast and it's become quite obvious that nothing is going to arrest it short of total government implosion. Businesses and jobs will just leave the United States and go where they're more welcome. Business is global now and they don't have to stay in a nation intent on commiting economic and political suicide. I would laugh my ass off if Paypal decided that it didn't want to be an American company anymore. They'll just fire their American employees and get new ones in a better country. Oh well.

 

They gave it plenty of thought. Paypal is used a lot by small business - the leading opponent of socialist progress.

 

I cannot attest to the stupidity. I am basing my statement on the general theme last year of pushing through legislation without knowing exactly what was in the package.

I do agree that if they did so intentionally, than in fact they are idiots.

$600 is not much.

 

I know where it came from and I know who's responsible. However as long as the stupid are still allowed to vote nothing will change.

Brush up on your chinese folks it'll make life in the sweat shop a little easier.

 

Fixed it for you

 

So running a business and not paying tax is a good thing?

 

As a business, we pay taxes on our revenue based upon profit and loss worksheets. I don't get a 1099 from the credit card company for credit card receipts...but that is tied directly to my bank account.

I really don't understand it more than anything. For me, it changes nothing as long as the process hasn't changed. Paypal said that the 1099 is recording gross sales which shouldn't be taxed...only the profit is taxable. I'm not sure the information actually means anything. I'm sure the IRS will figure out a way to take more money because of it though.

 

If you are the one that owns the business its a damn good thing.

 

I don't own a business but it's entirely possible that do more than 200 paypal transactions a year. Most of which are buying something from an idividual. I'm not filling out a 1099 just so the US government can tax my income again. This is nothing more than an attempt to tax person to person transactions that would normally happen in cash face to face.

 

Then do them face to face with cash and your problem is solved:up:

 

Yep...it's just means lost business for Paypal.

 

If you are only buying how are you going to pay tax on income?

 

It says transactions I assume that includes buying and selling.

 

If you are buying something then why would you receive a 1099? You understand that buying something does not increase your income, right?

 

paypal already turns over your account info to state irs departments, they have for years

 

Of course I do.

I'm trying to figure out how they will define who's using it to run a business and who's just selling shit he doesn't want to store in the basement anymore. And why should I be taxed again when I sell something that I paid both income taxes when I earned the money to buy it, and the sales taxes I paid when I bought it? When is enough enough?