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A Little Caution Might be in Order
Posted:
Sun Aug 21, 2011 7:48 amby beauanderos
Another member (of another forum I belong to) told me a HORROR story
yesterday. A friend of his has gotten into deep doodoo with the IRS and is being audited... because of a 1099 form that was filed by Paypal for his receiving too many payments via Paypal "gift." I don't know what their limit is, but why draw undue attention to yourselves? Just another instance of govt entities developing too much info on what someone might or might not own.
Re: A Little Caution Might be in Order
Posted:
Sun Aug 21, 2011 9:46 amby Thogey
Are you sure that's why a 1099 was issued?
Check this out.
https://www.paypal.com/helpcenter/main. ... tance=9020
Re: A Little Caution Might be in Order
Posted:
Sun Aug 21, 2011 10:05 amby Thogey
May he was audited for sending more that 13K as gift. That's the IRS limit for how much you may give.
Re: A Little Caution Might be in Order
Posted:
Sun Aug 21, 2011 10:18 amby abc
Also if have have more than 20K in payments coming in per year, paypal is reporting it to the IRS.
Re: A Little Caution Might be in Order
Posted:
Sun Aug 21, 2011 7:45 pmby Dr. Cadmium
If you're trying to avoid the IRS, don't buy or sell anything online.
Re: A Little Caution Might be in Order
Posted:
Sun Aug 21, 2011 7:46 pmby Oakair
Dr. Cadmium wrote:If you're trying to avoid the IRS, don't buy or sell anything online.
Cash is king in sliding under the radar
Re: A Little Caution Might be in Order
Posted:
Mon Aug 22, 2011 8:09 amby franklin
I've been frustrated at times with members who will only take PP as payment, understanding it is the easiest and fastest for them but it's not for me. When you let someone else do your bookkeeping for you and have never met them (PP), unfortunate things can happen. I'm not in complete agreement with Doc Cadmium's statement but my level of paranoia probably isn't as high as it needs to be.
Gun show dealer was selling at 30x this weekend and you got to pick 'em.
Re: A Little Caution Might be in Order
Posted:
Mon Aug 22, 2011 1:47 pmby JobIII
I don't want to sound like a buzzkill. But profit is profit. Either report it or run the risk of having something like this happen to you. It gets even more confusing when you sell PM's, because the profit is sometimes hard to determine over the cost of the lot.
Accepting large amounts of payments through PP gift may avoid fees, but clearly can land you in another kind of trouble. Also wasn't PP cutting down on the gift option already?
My friend works for the Treasury and has raided homes of tax evaders and confiscated among other things, bags and bags of copper cents... I say to each their own, and hope no one here gets audited or raided...
JobIII
Re: A Little Caution Might be in Order
Posted:
Mon Aug 22, 2011 4:44 pmby fb101
course, there's always the option of reporting the income and keeping the IRS off your back...
I'm just sayin'....