Considering the changes coming to Venmo, PayPal, Zelle, Cash App, etc. Would you considering one price for cash payments and a higher one for electronics?

[marylander1940]

I don't know if it's appropriate quoting a similar thread I started in the politics forum on here therefore I will just post some article on this subject. This certainly wouldn't be the first time the issue of taxes and cash is mentioned on here. 

Venmo, Cash App to report payments of $600 or more (spectrumnews1.com)

[+ BenjaminNicholas]

This is for commercial or business accounts only. 

If it's reimbursement or personal cash transfers, this new rule won't apply. 

[+ DrownedBoy]

Can you bypass that by making more than one payment at a time?

I think they might look deeper at personal transfers, since a lot of businesses give deals if you pay them personally (or in cash).

[marylander1940]

1 hour ago, DrownedBoy said:

Can you bypass that by making more than one payment at a time?

I think they might look deeper at personal transfers, since a lot of businesses give deals if you pay them personally (or in cash).

Structuring shows intention of bypassing the law. 

[Jarrod_Uncut]

 

On 1/16/2022 at 1:42 AM, Benjamin_Nicholas said:

This is for commercial or business accounts only. 

If it's reimbursement or personal cash transfers, this new rule won't apply. 

It seems to say “all” accounts over $600 a month will be reported. I know there’s PayPal business account, but not sure about cash app and Venmo “biz” accounts. 
 

 

[marylander1940]

I also noticed some banks are requiring showing an ID if a customer is depositing cash even into his own personal account. Obviously, most escorts simply use the ATM. 

[+ BenjaminNicholas]

This might help clear up some misconceptions...

https://www.cnbc.com/2022/01/12/irs-isnt-taxing-your-venmo-transactions.html

 

[+ nycman]

They’re looking for patterns.

I doubt they give a shit what "type" of account it is.
If they identify a "pattern", they are going to have "questions".
If you don’t have clear, easily explainable, and well documented
"answers"….you will be paying taxes. And most likely fines. 

Cash is king.

[jtwalker]

4 hours ago, Benjamin_Nicholas said:

This might help clear up some misconceptions...

https://www.cnbc.com/2022/01/12/irs-isnt-taxing-your-venmo-transactions.html

 

They're not taxing your transactions YET. 

If they are not looking for more taxes, why would they bother?  It's the old government motto at work here, "Take what you can now and come back for the rest later."

[Jarrod_Uncut]

7 hours ago, jtwalker said:

They're not taxing your transactions YET. 

If they are not looking for more taxes, why would they bother?  It's the old government motto at work here, "Take what you can now and come back for the rest later."

I think at the end of the day, it‘s not going to be a direct hit on providers…thus, it’s really not likely to make any huge changes on us. You might just have to count a little bit here and there. But with the way business is so dry and dead right now in many markets; I doubt it would amount to much of anything… 

[italianboyph]

Honestly if it’s comes to it, cash would just be much better.

[+ Tygerscent]

On 1/15/2022 at 6:12 PM, marylander1940 said:

I don't know if it's appropriate quoting a similar thread I started in the politics forum on here therefore I will just post some article on this subject. This certainly wouldn't be the first time the issue of taxes and cash is mentioned on here. 

Venmo, Cash App to report payments of $600 or more (spectrumnews1.com)

My solution to this is: my regular Clients who make longer term appointments with me, (weekend, five days, weeks), they make a series of Zelle payments on different dates~ This can be before or during an appointment. It can also be a combo cash and Zelle~

 I always prefer cash but, have included Zelle for Clients I have seems before~  
 As far as taxes: keep it all clean. Declare all income and pay your taxes~ 

[+ Tygerscent]

On 1/18/2022 at 9:52 AM, marylander1940 said:

I also noticed some banks are requiring showing an ID if a customer is depositing cash even into his own personal account. Obviously, most escorts simply use the ATM. 

I actually never use the atm except to deposit~ Even then, I’m using my card which is attached to my ID~ 

[+ Tygerscent]

On 1/17/2022 at 9:28 PM, Jarrod_Uncut said:

 

It seems to say “all” accounts over $600 a month will be reported. I know there’s PayPal business account, but not sure about cash app and Venmo “biz” accounts. 
 

 

Pay pal sucks… blah~ 🤮 🤢 🤮… never… it’s a rip off~ 

[Kevin Slater]

On 1/18/2022 at 1:09 PM, Benjamin_Nicholas said:

This might help clear up some misconceptions...

https://www.cnbc.com/2022/01/12/irs-isnt-taxing-your-venmo-transactions.html

 

I think this article provides more clarity.

Kevin Slater

[rvwnsd]

This paragraph (boldface/italics added for emphasis) does a nice job of summarizing what is not changing:

To be clear, there’s nothing new about the duty to pay taxes on income from sales or services. As the IRS explains in Publication 525, the obligation extends even to profits from the sale of personal items or hobby collectibles. So if you buy a rare jazz LP for $5 at a yard sale and then sell it for $300, you owe taxes on the $295 you cleared.

I recently hired an escort who prefers being paid by Cashapp or Venmo because he has a record of the transaction. That record can be used to substantiate his income when borrowing money for a major purchase and when he prepares his taxes.

[TJnDB]

It's confusing.  I just read on the Zelle site they do not report transactions to the IRS.  Here's the Zelle page - Zelle

[Kevin Slater]

6 minutes ago, TJnDB said:

It's confusing.  I just read on the Zelle site they do not report transactions to the IRS.  Here's the Zelle page - Zelle

Yup, that was covered in the article I linked above.

Kevin Slater