[Elecraft] PayPal holding payment

[Frank Krozel]

And they are listening just got this.

We’ve got you covered with all the details:
Beginning January 1, 2022, the IRS implemented new reporting guidelines for individuals receiving goods and services payments on PayPal and other platforms totaling $600 or more per year.
So what exactly does this mean for you?
	
Well, if you’re getting payments from friends and family members, this won’t apply (lucky you!). Friends and family payments are things like splitting a bill, sharing apartment expenses, or paying back friends. None of these are reported.
	
The new tax requirements only apply to goods and services payments. These transactions are tagged in the app by a buyer, indicating they’re purchasing something like a couch from a seller. Payments received by a Seller Profile are also goods and services payments.
	
If you receive over $600 in goods and services payments, we’ll automatically keep track of these payments and provide you with a 1099-K form at the end of the year. If your tax info is not complete, we’ll reach out to you with instructions.
And remember, this only applies to receiving goods and services payments. Payments that you send are not reported. 


This info isn’t tax advice. Please consult your tax advisor about these. If you need more info, you can learn more here <https://epl.paypal-communication.com/T/v600000180b9176798a56b1ef4bbc786c8/4810f11fa83244200000021ef3a0bcc4/4810f11f-a832-4420-812d-ab8882a8e94e?__dU__=v0oQlZ2XmHtXgxjjiWvqAt6oUbloqyA_uK>.

-73-  Frank    KG9H
kg9hfrank at gmail.com




> On May 12, 2022, at 11:10 AM, Thomas Valenti <tomk3aj at gmail.com> wrote:
> 
> There is another, very important reason NOT to accept payments via PayPal
> for casual, hobby related transactions.
> 
> Effective this year, PayPal (and Venmo) now issues an IRS form 1099-K to
> anyone receiving more than $600 in a calendar year. Therefore, you have to
> report your proceeds as income, unless you can provide documentation that
> you sold the item for less than you paid for it. A hassle just not to be
> invited. The last thing you need is a reason for the IRS to scrutinize your
> tax return.
> 
> Ask me how I know. Last year, I sold a bunch of ham radio equipment and
> took payment by PayPal. When the 1099-K arrived, my CPA (who happens to be
> my XYL) went crazy. Naturally, I did not have documentation about exactly
> when and for how much I had acquired some of this gear.
> 
> KISS - take payment the old fashioned way - via check sent through snail
> mail.
> 
> Tom K3AJ
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