Meanwhile, they are now requiring people to disclose even $600/yr income gained from side sources. This is down from the previous requirement of mandating it only if one earn $20,000/yr from side sources.
If they only intend to audit the big guys, why are they suddenly requiring people to report a measly $600/yr in side-income while simultaneously massively beefing up the number of auditors?
Independent contractors have loosely had the same $600 threshold for a long time (you’re supposed to report all income, but the payer is required to send the contractor a 1099 when the income is $600 or more). As far as I can tell, the new $600 rule is kind of just connecting the dots and making it harder to ignore the tax responsibility when the money is transferred through apps like Venmo. I agree it’s not a great thing to focus on when the wealthy are not paying their fair share of taxes, but it’s also not a huge change.
The IRS generates many times more revenue than its operating cost when they audit wealthy taxpayers.
For some reason, the link was originally only showing me the graph, not the actual article. But thank you for the summary!
Meanwhile, they are now requiring people to disclose even $600/yr income gained from side sources. This is down from the previous requirement of mandating it only if one earn $20,000/yr from side sources.
If they only intend to audit the big guys, why are they suddenly requiring people to report a measly $600/yr in side-income while simultaneously massively beefing up the number of auditors?
Independent contractors have loosely had the same $600 threshold for a long time (you’re supposed to report all income, but the payer is required to send the contractor a 1099 when the income is $600 or more). As far as I can tell, the new $600 rule is kind of just connecting the dots and making it harder to ignore the tax responsibility when the money is transferred through apps like Venmo. I agree it’s not a great thing to focus on when the wealthy are not paying their fair share of taxes, but it’s also not a huge change.