So people will be taxed on venmo and zelle transactions?

[Anonymous]

Anonymous wrote:I see the data collection as just another data point they can go after tax cheats on IF you otherwise get tagged for an audit. They won’t do an audit on your $3K yearly side hustle. But if you’re moving $30K per month thru Venmo and no corresponding income tax reporting, you’ll get nailed. They will go after the whales on Venmo and Zelle, which likely are people engaged in otherwise pretty shady lines of business (drug dealing).

Further, true tax cheats tend to cheat on taxes in many different ways. When they get audited, the Venmo and Zelle data points are just more pieces of evidence for the IRS to use to build a broader and more impactful case.

In short, they are going to require you to attest that your Venmo and Zelle activity has corresponding expense offsets. For vast majority of people, that is true - the app is used for splitting expenses with various parties. If you lie about that, this gives the IRS another avenue for nailing tax cheats.

In the last two years, I’ve sent and received probably $35K thru these apps. Most of that has been for settling up shared vacation house expenses with friends. I’m not worried at all.

I thought Zelle wasn't impacted by this new legislation? Isn't Zelle basically the same thing as an ACH transfer or check?

[Anonymous]

Revolut which has 25 million customers and does free transfers is exempt from the rule. Technically they are not a payment processing company so rule does not apply.

Use them, pretty much everyone on Earth under 30 uses them. Venmo and Zelle are for old people. I mean really really old like over 29.

[Anonymous]

Anonymous wrote:Revolut which has 25 million customers and does free transfers is exempt from the rule. Technically they are not a payment processing company so rule does not apply.

Use them, pretty much everyone on Earth under 30 uses them. Venmo and Zelle are for old people. I mean really really old like over 29.

You mean it's for clueless broke kids who think that crypto is their retirement plan.

[Anonymous]

People paying cash, check or by Zelle or Venmo
Are also tax cheats.

I say that as I did a $30,000 renovation. Guy asked for cash. He said he does take credit cards but a 3 percent processing fee and his tax rate is 28 percent on the profit and he has payroll taxes for workers.

So like $36,000 on the books.

He explained part of his issue. Most of his workers want cash and the wholesalers of goods want a check.

Literally he paid his workers weekly out of cash I paid him. Right in front of me.

We decided he take a check for materials but cash for workers.

They were not illegals. One was a licensed plumber moonlighting his day job and did not want a trail. Other worked for Pepco. Same thing.

So it is not just tax evasion, but he was fine on the books but you had to pay more

[Anonymous]

Anonymous wrote:

Anonymous wrote:Revolut which has 25 million customers and does free transfers is exempt from the rule. Technically they are not a payment processing company so rule does not apply.

Use them, pretty much everyone on Earth under 30 uses them. Venmo and Zelle are for old people. I mean really really old like over 29.

You mean it's for clueless broke kids who think that crypto is their retirement plan.

Look up Revolut. It is a Super App. It is in 30 countries with 25 million customers. I like no fees. I can go to ATM anywhere is world fee free and lowest FX rates in world, plus pays interest.

They are rolling out more stuff. It is great splitting bill. In Europe they got a POS reader where 4 people out at dinner can split bills four ways with out you taking card out of wallet or pulling out your phone. It’s wild. Their <18 card is possible. They are even going to in 2025 roll out same day mortgages in the App! That one I think is crazy

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Revolut which has 25 million customers and does free transfers is exempt from the rule. Technically they are not a payment processing company so rule does not apply.

Use them, pretty much everyone on Earth under 30 uses them. Venmo and Zelle are for old people. I mean really really old like over 29.

You mean it's for clueless broke kids who think that crypto is their retirement plan.

Look up Revolut. It is a Super App. It is in 30 countries with 25 million customers. I like no fees. I can go to ATM anywhere is world fee free and lowest FX rates in world, plus pays interest.

They are rolling out more stuff. It is great splitting bill. In Europe they got a POS reader where 4 people out at dinner can split bills four ways with out you taking card out of wallet or pulling out your phone. It’s wild. Their <18 card is possible. They are even going to in 2025 roll out same day mortgages in the App! That one I think is crazy

Wow, that app is over the top. I try to keep things simple and do Zelle transfers from my us bank. For overseas stuff, I have a Schwab checking account with zero ATM fees. For international money transfers, I use Remitly.

There is a lot going on with Revolut...too much for me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Pisses me off when congress gets wined and dined, lots of perks, insider trading, and some cheat on their taxes. But they are going after small business owners. It used to be $20,000 that flagged the IRS and now it’s $600?? That’s quite a jump.

$600 has been a threshold for information reporting for decades

I can see none of these people watched Roseanne.

[Anonymous]

The IRS still has boxes of returns sitting in the office from 2020. What will happen when they get another 2 million wrong returns because I’d this?

[Anonymous]

Anonymous wrote:People paying cash, check or by Zelle or Venmo
Are also tax cheats.

I say that as I did a $30,000 renovation. Guy asked for cash. He said he does take credit cards but a 3 percent processing fee and his tax rate is 28 percent on the profit and he has payroll taxes for workers.

So like $36,000 on the books.

He explained part of his issue. Most of his workers want cash and the wholesalers of goods want a check.

Literally he paid his workers weekly out of cash I paid him. Right in front of me.

We decided he take a check for materials but cash for workers.

They were not illegals. One was a licensed plumber moonlighting his day job and did not want a trail. Other worked for Pepco. Same thing.

So it is not just tax evasion, but he was fine on the books but you had to pay more

What are you talking about?

It’s not about illegals. Why do you think the plumber and electrician didn’t want a paper trail? Tax evasion. It was just tax evasion.

[Anonymous]

Anonymous wrote:The IRS still has boxes of returns sitting in the office from 2020. What will happen when they get another 2 million wrong returns because I’d this?

They’ll get around to it within 7 years and wrongdoers will pay with interest.

[Anonymous]

Ironically some large business are literally just realizing they should have been collecting w9 forms for amounts over $600. I just got a request to fill out a w9 for a company I did business through but the last time we did business and I got paid was in March. 2022 tax season is going to be wild.

[Anonymous]

Anonymous wrote:

Anonymous wrote:People paying cash, check or by Zelle or Venmo
Are also tax cheats.

I say that as I did a $30,000 renovation. Guy asked for cash. He said he does take credit cards but a 3 percent processing fee and his tax rate is 28 percent on the profit and he has payroll taxes for workers.

So like $36,000 on the books.

He explained part of his issue. Most of his workers want cash and the wholesalers of goods want a check.

Literally he paid his workers weekly out of cash I paid him. Right in front of me.

We decided he take a check for materials but cash for workers.

They were not illegals. One was a licensed plumber moonlighting his day job and did not want a trail. Other worked for Pepco. Same thing.

So it is not just tax evasion, but he was fine on the books but you had to pay more

What are you talking about?

It’s not about illegals. Why do you think the plumber and electrician didn’t want a paper trail? Tax evasion. It was just tax evasion.

The people who really want to evade taxes are still asking for cash only payments. Even idiots know that if the IRS checks their bank statements during an audit and they don’t report payments made through payment processors it’s going to be obvious they cheated them.

[Anonymous]

He tax evaders and the idiots in government who allow taxpayer funds to be wasted or ripped off all deserve a special place a workers penal colony. From PPP to Pentagon waste to folks not paying taxes, get ‘em to work!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People paying cash, check or by Zelle or Venmo
Are also tax cheats.

I say that as I did a $30,000 renovation. Guy asked for cash. He said he does take credit cards but a 3 percent processing fee and his tax rate is 28 percent on the profit and he has payroll taxes for workers.

So like $36,000 on the books.

He explained part of his issue. Most of his workers want cash and the wholesalers of goods want a check.

Literally he paid his workers weekly out of cash I paid him. Right in front of me.

We decided he take a check for materials but cash for workers.

They were not illegals. One was a licensed plumber moonlighting his day job and did not want a trail. Other worked for Pepco. Same thing.

So it is not just tax evasion, but he was fine on the books but you had to pay more

What are you talking about?

It’s not about illegals. Why do you think the plumber and electrician didn’t want a paper trail? Tax evasion. It was just tax evasion.

The people who really want to evade taxes are still asking for cash only payments. Even idiots know that if the IRS checks their bank statements during an audit and they don’t report payments made through payment processors it’s going to be obvious they cheated them.

That may not hit bank. My neighbor growing up had a cash business. He buy very late model used cars from private parties and pay cash. All home improvements in cash. He even pay his part time workers in cash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People paying cash, check or by Zelle or Venmo
Are also tax cheats.

I say that as I did a $30,000 renovation. Guy asked for cash. He said he does take credit cards but a 3 percent processing fee and his tax rate is 28 percent on the profit and he has payroll taxes for workers.

So like $36,000 on the books.

He explained part of his issue. Most of his workers want cash and the wholesalers of goods want a check.

Literally he paid his workers weekly out of cash I paid him. Right in front of me.

We decided he take a check for materials but cash for workers.

They were not illegals. One was a licensed plumber moonlighting his day job and did not want a trail. Other worked for Pepco. Same thing.

So it is not just tax evasion, but he was fine on the books but you had to pay more

What are you talking about?

It’s not about illegals. Why do you think the plumber and electrician didn’t want a paper trail? Tax evasion. It was just tax evasion.

The people who really want to evade taxes are still asking for cash only payments. Even idiots know that if the IRS checks their bank statements during an audit and they don’t report payments made through payment processors it’s going to be obvious they cheated them.

That may not hit bank. My neighbor growing up had a cash business. He buy very late model used cars from private parties and pay cash. All home improvements in cash. He even pay his part time workers in cash.

IRS will usually do a lifestyle assessment and if you’re living a lifestyle that does not match the amount you say you made on your taxes (i.e. say you make $25k a year but have a Patek Philippe and drive a new Ferrari) they will reassess your taxes which you would have to challenge if you so wish.