1099-K Form Reporting Threshold Delay Announced For Tax Year 2023

@HowardJuice23 wrote:

@johnb974 wrote:

Biden admin backs down on tracking bank accounts with over $600 annual transactions (from 2021)

The Biden administration on Tuesday backed down on a controversial proposal to direct the IRS to collect additional data on every bank account that sees more than $600 in annual transactions

[abcnews.go.com].

They wanted the banks to issue 1099's on bank deposits. I'm sure they will try again

And that has exactly what to do with mystery shoppers now?

When they couldn't get the banks to do this, they went after pay apps. They than changed it on to a smaller scale, pay apps. Either of these affect mystery shoppers.

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@johnb974 wrote:

@HowardJuice23 wrote:

@johnb974 wrote:

Biden admin backs down on tracking bank accounts with over $600 annual transactions (from 2021)

The Biden administration on Tuesday backed down on a controversial proposal to direct the IRS to collect additional data on every bank account that sees more than $600 in annual transactions

[abcnews.go.com].

They wanted the banks to issue 1099's on bank deposits. I'm sure they will try again

And that has exactly what to do with mystery shoppers now?

When they couldn't get the banks to do this, they went after pay apps. They than changed it on to a smaller scale, pay apps. Either of these affect mystery shoppers.[/quote

This is the last time I reply to your nonsense but I think it’s important to point out. MSCs have always issued 1099s. This changes nothing in regard to mystery shoppers and their taxes. Nothing.

@HowardJuice23 wrote:

@mystery2me wrote:

@johnb974 wrote:

What was the purpose of having the pay apps issue 1099's? Who does it affect the most? (Low or high income earners?)

Simply put, it was to raise money for the Covid stimulus plan. Yes, to increase tax collections, because due to self-imposed rules Congress had to raise money for the Covid relief instead of borrowing the money.

I suppose because more and more commerce goes online and more people work as ICs instead of as regular employees without getting 1099s and such, more taxes were going uncollected. And, yes, it probably does affect low income taxpayers more on the micro level.

That is true. But just to be clear, this doesn’t change anything in regard to mystery shoppers. This does not mean the IRS is going to spend more time going after mystery shoppers. MSCs have always issued 1099s. Nothing will change

mystery shopping companies only issue 1099's if you make $600 or more.

And as many have pointed out to you not only in this thread but over the course of years, legally you have to report all income. The "trigger" for reporting income is not receipt of a 1099 form, the "trigger" is payment made to you by an MSC in any amount from $0.01 to a million dollars (or more). You may not like it, but that is the law.

You may find it useful to tell us over and over that you don't like the law and that you feel that it disproportionately impacts low-income taxpayers, but that opinion on your part does not impact the day-to-day operation of how we conduct mystery shopping. As many have pointed out to you, telling us that you don't like the tax law accomplishes nothing beyond annoying some of the people on this Forum. I assume that is indeed your goal. You have been advised to contact your elected representatives, and you have declined. You could also decide to run for office yourself. Once you announce your formal candidacy for elected office and have filed the appropriate paperwork and nominating petitions, I will personally buy you a soapbox to stand on when you make your stump speeches. You will have to report that as a campaign contribution since that is the law.

@johnb974 wrote:

@HowardJuice23 wrote:

@mystery2me wrote:

@johnb974 wrote:

What was the purpose of having the pay apps issue 1099's? Who does it affect the most? (Low or high income earners?)

Simply put, it was to raise money for the Covid stimulus plan. Yes, to increase tax collections, because due to self-imposed rules Congress had to raise money for the Covid relief instead of borrowing the money.

I suppose because more and more commerce goes online and more people work as ICs instead of as regular employees without getting 1099s and such, more taxes were going uncollected. And, yes, it probably does affect low income taxpayers more on the micro level.

That is true. But just to be clear, this doesn’t change anything in regard to mystery shoppers. This does not mean the IRS is going to spend more time going after mystery shoppers. MSCs have always issued 1099s. Nothing will change

mystery shopping companies only issue 1099's if you make $600 or more.

Shopping Southeast Pennsylvania, Delaware above the canal, and South Jersey since 2008

Than everyone in America is guilty of not reporting all income. Like I said, if you find $20 on the street, I don't know of anyone who would report it as income.

I never pay much attention to any 1099s I receive. I keep an accurate spreadsheet of my pay and any costs associated with that pay. If I am audited, I have the records. This whole 1099 argument is irrelevant to my mystery shopping business.

@johnb974 wrote:

@weatherman2111 wrote:

@HowardJuice23 wrote:

The only reason for making pay apps issue 1099's is to go after low income taxpayers. It's not about being fair or making everyone pay their fair share....IRS codes are not fair to begin with. They favor the rich.

Huh? Based on what? How is this going to cause the IRS to "go after" low income taxpayers? You are just saying things to say things with zero evidence.

As for the IRS codes not being fair and favoring the rich, you don't have any argument from me there. That isn't the IRS though, talk to your congressman about that.

It doesn't change the fact that the chance of getting audited is extremely low and the chance of any kind of major adjustment even lower.

Stop.

You're attempting to argue with someone who may very well be a ChatGPT bot from Grover Norquist, so we're all wasting our time. You are correct though.

You said "Huh? Based on what? How is this going to cause the IRS to "go after" low income taxpayers? You are just saying things to say things with zero evidence."....than what was the reason for making pay apps issue 1099's? (except to track income people making income from garage sales or mowing lawns)[/quote]

You have a problem that you need serious help with. Try therapy and medication. We're not your doctors and you're spewing nonsense. You have been repeatedly corrected and yet you persist in confusing other people as well.

Just to be clear to everyone, you will not be "double taxed" on a 1099 from Paypal and one from your MSC. The Paypal one will only be relevant to things that the MSC 1099's don't already cover. Yes, it takes a bit of extra paperwork to make sure you have everything matched up but that's what records are for. When you run a business, and that's what we are, you have to keep records. If you sell significant amounts of stuff on Ebay or mow dozens of lawns or drive for UberEats all night and make a profit, that's a business. Plain black letter law.

@weatherman2111 wrote:

If you sell significant amounts of stuff on Ebay or mow dozens of lawns or drive for UberEats all night and make a profit, that's a business. Plain black letter law.

That is not necessarily true. Terms like "significant" and "dozens" are vague terms that have nothing to do with whether one has a legal business. To say that is "plain black letter law" IS misinformation.

You can be engaged in business activity, but the IRS does not necessarily consider that a business. There must be a clear profit motive, and you must turn a profit at least 3 out of 5 consecutive years. Otherwise, you have hobby, not a business, in the eyes of the IRS. The unfair part is you could make enough income that you owe taxes, but if the IRS calls it a hobby you cannot take the deductions.

@ServiceAward wrote:

@weatherman2111 wrote:

If you sell significant amounts of stuff on Ebay or mow dozens of lawns or drive for UberEats all night and make a profit, that's a business. Plain black letter law.

That is not necessarily true. Terms like "significant" and "dozens" are vague terms that have nothing to do with whether one has a legal business. To say that is "plain black letter law" IS misinformation.

You can be engaged in business activity, but the IRS does not necessarily consider that a business. There must be a clear profit motive, and you must turn a profit at least 3 out of 5 consecutive years. Otherwise, you have hobby, not a business, in the eyes of the IRS. The unfair part is you could make enough income that you owe taxes, but if the IRS calls it a hobby you cannot take the deductions.

This is true with a couple of important caveats.

First and most importantly, this will likely not affect mystery shoppers as hobbies are mostly people who take losses every year. The IRS looks for losses three out of five years.

Second, yes you can’t deduct expenses, but you can deduct cost of goods sold. For example, if you sell a comic book for $1000 and you paid $900 for it you would only report $100 of income. Also, you don’t have to pay self employment taxes on hobbies so it kind of washes out.

Again, true but likely, once again, no effect on mystery shoppers

Not all MSC's issue 1099's, only if you made $600 or more from that company. under $600 there's no 1099. Then it becomes a "he said she said", unless the IRS audits everyone doing work for that MSC. The only reason for making pay apps to send out 1099's is to track anyone making more than $600 a year from odd jobs

Reading this thread is like my worst day with vertigo - my head is spinning from all the back and forth.

Regardless of what "side" you're on in this debate, I think we can all agree:

Meticulous recordkeeping is more critical than ever.

If your path dictates you walk through hell, do it as though you own the place. -unknown

@drdoggie00 wrote:

Reading this thread is like my worst day with vertigo - my head is spinning from all the back and forth.

Regardless of what "side" you're on in this debate, I think we can all agree:

Meticulous recordkeeping is more critical than ever.

I don't agree. It isn't "more critical than ever". Nothing has changed in regard to mystery shopping. It really isn't that confusing. You can believe me who prepares tax returns or the author of this post who obviously has an apolotical beef with the IRS.

Your mystery shopper income is reported on a Schedule C. Keep some kind of spreadsheet/log of your expenses which will likely mostly be mileage. You don't need "meticulous" records. In the highly unlikely event you are audited the IRS will ask for this and it will likely be more than enough to suffice. That's it. They aren't going to do some kind of indepth audit/investigation on someone who makes a couple of thousand dollars a year on mystery shopping. They don't have the resources and even if they did it wouldn't be worth their time.

If you have any issues or questions, go to a tax preparer or the IRS has VITA (volunteer income tax assistance) programs and will help you. Look one up in your area on the IRS website.

As someone who tends to become lackadaisical with her recordkeeping as the year progresses, the statement most definitely applies to me.

Good day to you, Howard.

If your path dictates you walk through hell, do it as though you own the place. -unknown

Edited 1 time(s). Last edit at 11/29/2023 04:46PM by drdoggie00.

@drdoggie00 wrote:

As someone who tends to become lackadaisical with her recordkeeping as the year progresses, the statement most definitely applies to me.

Good day to you, Howard.

Well if you are arguing what the definition of "meticulous" is, that's a different argument. But nothing has changed and it's not more "critical" than ever.

I would like non-political, fact-based answers about 2024 taxes.

1-Are all reimbursements/expenses taxable, or non-taxable?
2- If "Expense" is used in the Shop Log assignment information, but "Reimbursement" is used in the Guidelines, which is correct? Does it matter?
3- I received one 1099 from a 2023 shop which was only for fees paid to me, but all the food reimbursements that were paid to me were not included. Is it a correct assumption that is correct for all shops?

Thank you for your help?

1. No, they are not taxable.
2. I do not believe it makes a difference but someone more legally-abled than me could say for sure.
3. Yes, reimbursement is not taxable, even if the MSC doesn't differentiate.

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1099-K Form Reporting Threshold Delay Announced For Tax Year 2023

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