Paypal Tax Docs, anyone gotten them yet?

[JoeAdam]

Originally Posted by asujbl

Then he sucks too

And yes I’m a CPA

The whole reason to pay a CPA is to bend the rules. You give them a goodwill receipt they deduct $499, or whatever the limit is now. Stuff like that.

[TimBuckTwo]

Too many Dudley Do-rights on the board. IRS is not looking for these types of offenders. Small change.

Lastly, I slept at a Holiday Inn Express last night so I just decided I am an accountant also.

[Spacemanspif]

Panini pays business tax —> builds into cost of product
Distributor buys from Panini —> takes 300% markup before passing to wax flipper
Wax flipper buys wax from distributor —> pays sales tax and 300% markup
Ripper buys wax from wax flipper —> pays sales tax and additional markup
Ripper opens wax —> 90% chance they take huge loss on pulls, desperately sell singles to recoup spend.
Singles flipper buys from ripper —> pays sales tax
Grader buys from singles flipper —> pays sales tax
Grader pays grading company $20 to slap a number and some
plastic on card
Clector buys card from grader —> pays sales tax and more markup

—> Guvment comes in to collect tax AGAIN on everyone

Meanwhile, all the rich dudes everywhere haven’t paid taxes EVER. Or you know, of course they did they just choose not to show us

[Davis]

Originally Posted by fearziz

no troll, i would ask paypal and the irs why i owe taxes when paypal didnt complete their legal obligation to provide it. until you get one, youre not liable in my opinion, at least not "in trouble". if the IRS expects everyone to be a bonafide tax expert, they need to make the process easier. that said, if you made under 20 grand, i highly doubt they give 2 poopies. if they audited everyone in this country, they would find issues and they dont have the staff for that. i am not an attorney, but i did go to a community college.

The only one with a legal obligation related to your tax return is you. PayPal provides a 1099 to help you. They have a legal obligation to report 1099s to individuals that receive a certain threshold of money, but their obligation is completely unrelated to yours. If your employer fails to withhold money from your paycheck or doesn’t issue a you a W-2, that’s your problem. You don’t need to be a tax expert to summarize the money you received in a year. Sure, the IRS doesn’t care about the guy that has $4k in receipts... but you better believe they care about the guy that had “sales” of $15K and didn’t report anything.

[fearziz]

Originally Posted by Davis

The only one with a legal obligation related to your tax return is you. PayPal provides a 1099 to help you. They have a legal obligation to report 1099s to individuals that receive a certain threshold of money, but their obligation is completely unrelated to yours. If your employer fails to withhold money from your paycheck or doesn’t issue a you a W-2, that’s your problem. You don’t need to be a tax expert to summarize the money you received in a year. Sure, the IRS doesn’t care about the guy that has $4k in receipts... but you better believe they care about the guy that had “sales” of $15K and didn’t report anything.

i sold about 14k this year and when i go to paypal tax documents there's nothing listed so i'm not doing anything, im taking my 500$ tax return to the bank and buying a years worth of miller high life.

[JMarchand1981]

Every. Single. Year.

[Davis]

Originally Posted by fearziz

i sold about 14k this year and when i go to paypal tax documents there's nothing listed so i'm not doing anything, im taking my 500$ tax return to the bank and buying a years worth of miller high life.

Odds are that nothing will ever happen and you’ll be living the high life during 2020. I’m just trying to point out the tax laws as there’s been many folks in your exact situation that got burned. And the don’t just burn you for 30%ish on the sales....they drop the hammer with fees and penalties, causing people to hire expensive attorneys and CPAs. So $14k of unreported income could easily turn into $10k out of your pocket. But if you just tracked your sales and expenses, you’d pay little to nothing in taxes as most hobbyists spend more than they sell.

[hatchd]

Originally Posted by JMarchand1981

Every. Single. Year.

I don't know why I get sucked into these tax threads every year. I just try and help correct the idiocy, but there's just so much of it.


Sent from my iPhone using Tapatalk

[solt0131]

One thing I will say that is actually a fact in this thread:

Every year the IRS will run a paper audit on everyone. Basically a program that cross references your social security number with all 1099's and W-2's etc that have been filed by companies with your social on it to assure that you have submitted those on your return and paid taxes on them. These are cost effective, don't require agents, and bring in tons of money each year for them.

[palmetto7]

Originally Posted by solt0131

One thing I will say that is actually a fact in this thread:

Every year the IRS will run a paper audit on everyone. Basically a program that cross references your social security number with all 1099's and W-2's etc that have been filed by companies with your social on it to assure that you have submitted those on your return and paid taxes on them. These are cost effective, don't require agents, and bring in tons of money each year for them.

Cant be true. How do people get away without filing and paying their taxes?

[solt0131]

Originally Posted by palmetto7

Cant be true. How do people get away without filing and paying their taxes?

Only one way to know......try it and find out.

[JMarchand1981]

Originally Posted by solt0131

One thing I will say that is actually a fact in this thread:

Every year the IRS will run a paper audit on everyone. Basically a program that cross references your social security number with all 1099's and W-2's etc that have been filed by companies with your social on it to assure that you have submitted those on your return and paid taxes on them. These are cost effective, don't require agents, and bring in tons of money each year for them.

How is it a paper audit without requiring agents?

[palmetto7]

Originally Posted by solt0131

Only one way to know......try it and find out.

My mom was upper management at IRS for over 30 years. Not the way it happens. I knew a gal whose husband did not file his taxes for many years without an audit. Based on your statement, this would be impossible.

[fearziz]

Originally Posted by palmetto7

My mom was upper management at IRS for over 30 years. Not the way it happens. I knew a gal whose husband did not file his taxes for many years without an audit. Based on your statement, this would be impossible.

Blade didn't file his taxes and he did about a year in the slammer haha

[palmetto7]

Im not saying try it out. Just that the statement of everyone being audited every year by a computer is wrong.

[solt0131]

Originally Posted by palmetto7

Im not saying try it out. Just that the statement of everyone being audited every year by a computer is wrong.

So you're saying the only way for the IRS to catch you not reporting a 1099-MISC or say a W-2G or wrong amounts is for them to get an agent and do a full audit?

[palmetto7]

Originally Posted by solt0131

So you're saying the only way for the IRS to catch you not reporting a 1099-MISC or say a W-2G or wrong amounts is for them to get an agent and do a full audit?

Might be a random percentage. I hear commercials all day from attorneys saying if you haven't paid your income taxes for years blah blah blah call them. How would that possibly happen?

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[Spacemanspif]

Originally Posted by palmetto7

Might be a random percentage. I hear commercials all day from attorneys saying if you haven't paid your income taxes for years blah blah blah call them. How would that possibly happen?

Sent from my SM-G950U1 using Tapatalk

It’s random. IRS has no way to audit each and every tax return every year. And as has been said, there’s no reason to waste resources coming after people over a few hundred bucks of trading card “income” unless you’re being blatant and establish clear patterns of fraud

[sethc1020]

Originally Posted by Spacemanspif

Panini pays business tax —> builds into cost of product
Distributor buys from Panini —> takes 300% markup before passing to wax flipper
Wax flipper buys wax from distributor —> pays sales tax and 300% markup
Ripper buys wax from wax flipper —> pays sales tax and additional markup
Ripper opens wax —> 90% chance they take huge loss on pulls, desperately sell singles to recoup spend.
Singles flipper buys from ripper —> pays sales tax
Grader buys from singles flipper —> pays sales tax
Grader pays grading company $20 to slap a number and some
plastic on card
Clector buys card from grader —> pays sales tax and more markup

—> Guvment comes in to collect tax AGAIN on everyone

Meanwhile, all the rich dudes everywhere haven’t paid taxes EVER. Or you know, of course they did they just choose not to show us

Best post! How many times 1 item can get taxed is unreal!

[MJGOAT23]

Originally Posted by Davis

He’s saying you DO have to report all your sales on your tax return, regardless of whether you get a 1099.

Sorry, never mind I misread (too quickly!). I thought it said just because you get one doesn't mean you have to report it. I report mine each year. It's a PITA but luckily i keep an excel sheet of all eBay and BO transactions. I forget to log a few sometimes though and don't remember till the end of the year and its usually some 5 or 10$ thing.

[jlzinck]

Originally Posted by fearziz

not sure what youre so concerned, if they dont provide a tax document it's because you don't owe taxes.

Please tell me you are no older than 16

[snakehunter14]

a) To get a 1099 from Paypal you have to have received over $20,000 AND had more than 200 transactions of "goods and services"
b) Posters are correct that Feds want their piece, even if you don't meet the criteria, i.e., $19,999 still requires you to pay.
c) The amount on the 1099 INCLUDES the amount of fees PayPal took, and what you had to give to eBay in fees, and postage paid, so you really didn't make that amount. I estimate I only received 88% of what was stated.
d) With the new tax laws reducing deductions, most small timers like me, with 224 sales all year and slightly over $20,000, can't hit the deduction requirement, so it all gets taxed. I'm no accountant, but it looks like a $3-5k hit.


Oh, yeah, I forgot
e) If you have good relationships/trust with other members here, they can use "friends" on PayPal to pay and it won't get on the taxable list.

[bigbadballard]

Mass sucks. 600 bucks is the limit.

I keep forgetting to enter mine...

[clocsta2323]

Originally Posted by jlzinck

Please tell me you are no older than 16

He is trolling all of you.

[clocsta2323]

Originally Posted by snakehunter14

a) To get a 1099 from Paypal you have to have received over $20,000 AND had more than 200 transactions of "goods and services"
b) Posters are correct that Feds want their piece, even if you don't meet the criteria, i.e., $19,999 still requires you to pay.
c) The amount on the 1099 INCLUDES the amount of fees PayPal took, and what you had to give to eBay in fees, and postage paid, so you really didn't make that amount. I estimate I only received 88% of what was stated.
d) With the new tax laws reducing deductions, most small timers like me, with 224 sales all year and slightly over $20,000, can't hit the deduction requirement, so it all gets taxed. I'm no accountant, but it looks like a $3-5k hit.


Oh, yeah, I forgot
e) If you have good relationships/trust with other members here, they can use "friends" on PayPal to pay and it won't get on the taxable list.

This alone is keeping Probstien in business