IRS GOING AFTER EVERYONE NOT JUST RICH

IRS GOING AFTER EVERYONE NOT JUST RICH

IRS going after everyone not just rich. Sometime in January of 2023, the IRS will start mailing out the 1099-K forms, required by the passage of the American Rescue Plan. When a person gets a payment from the likes of eBay, Etsy, Venmo, or AirBrib, those entities are now required to send out a Form 1099-K, which then details the 2022 gross annual income that that person earned from the entity. It could be as low as $600, which averages out to just $50 a month. The year 2021 required that those entities only had to send the 1099-K if the total amount was over $20,000. The IRS has stated that the 1099-K is going to allow it to identify unreported income, allow it to increase its collection actions, and help pay down the deficit by bringing in more revenue. The three categories of taxpayers who are disproportionately gaming the system are the wealthy, small businesses who can categorize large amounts of expenses, and gig workers, who get paid by cash, or with the systems describes above. IRS going after everyone not just the rich.

Treasury Secretary Yellen sent a letter to the IRS Commissioner directing the new funding the IRS received not to be used to increase audits on small businesses or households earning less than $400,000. Yet the directive by Yellen has no legal standing at all. In fact the IRS can require payment facilitators to send millions of additional 1099-Ks to the middle class and small businesses and then say they haven't increased audits. But the reality is, with government deficits increasing, the audits of everyone will be increased, to raise the government's ability to raise revenue.

IRS FRESH START PROGRAM

If you have a IRS Audit underway and need help, Tax Resolution Services could be the answer, as they can help with an IRS Audit. If you have Unfiled Tax Returns, getting them fixed now can prevent future IRS Collection Action, like an IRS Wage Garnishment. Ask us about the IRS Fresh Start Program.