1099-K IRS SHOWS ITS GOING AFTER EVERYONE

1099-K IRS SHOWS ITS GOING AFTER EVERYONE

1099-K IRS shows its going after everyone. Recent legislation now requires payment providers to forward tax statements, form 1099-K, to anyone who received payment that exceeds $600. The old limit was $20,000. Many mom and pop shops, Gig workers, and self employed business owners will fall into that trap, as the law was recently passed, yet many were not paying any estimated taxes on that income, thinking the law would be the same. Millions of these tax forms will start being sent out in 2023, and those caught owing taxes will have no where to hide as the IRS will have caught up to them. In passing the legislation it was sold as a way to crack down on the wealthy, who have been skirting their fair share for decades, according to the Tax Policy Institute. While the bill does hire 87,000 more IRS personnel and increases the numbers of auditors, it also will increase those in the Collection Division, and they go after everyone. 1099-K IRS shows its going after everyone.

In Europe, due to the social programs those countries have, the middle income brackets pay far more in tax than Americans. With the increased spending due to Covid and an aging population needing social programs, the need for more taxes cannot be borne only by the wealthy. The middle class will pay, and for those skirting the system, by using payment processors who in the past have not reported income, those businesses and individuals will finally be in the loop, as well as the wealthy who will face increased audits. Having Unfiled Tax Returns, or a tax debt will get you put into the Collection Divisions cross hairs, starting in 2023.

TAX RESOLUTION

Those who have a tax debt and need help, may consider the IRS Fresh Start Program as its one of many alternatives to solving a tax debt. Better than getting a IRS Wage Garnishment. To determine all options, you may need Tax Resolution.