The American Revolution was fought partly over taxes. An unjust regime was holding our country hostage by exacting huge tariffs and taxes on everything its citizens did.
Eventually, patriots had enough and resisted, demanding the right to run their businesses and lives as they saw fit.
These issues have not gone away with the centuries. In fact, they’ve only become even more pressing.
Now, the Internal Revenue Service (IRS) is out with a new way to steal even more tax money from hardworking Americans just trying to make ends meet.
The IRS’ New Snatch and Grab Plan
This coming 2022 tax year is going to have an important update from the IRS that will change the way things work for many in the gig economy.
With inflation on the rise and money tighter than ever, following years of unhelpful lockdowns, many of us have a side gig.
Whether that’s crafting on Etsy, driving Uber on the side, or renting out a room on Airbnb, we may hope that we can earn a couple of hundred dollars here and there, without placing it as a sacrificial offering at the feet of the tax beast.
However, that’s no longer the case. A 2022 rules update will make any earnings over $600 necessary to be reported by online platforms directly to the IRS.
In other words, if you earn $641.28 selling shirts and collectibles on eBay next year, the IRS is going to know about it. They’re going to require you to list every single dollar and cent of those earnings.
Technically, you already are required to do that! The issue is just that now it will be doubly enforced. Businesses will have to fully account for everything they pay you as well, which will obviously lead to a slowdown in hiring new small-time operators.
It will also make signing up to use and sell on platforms more time-consuming and bureaucratic.
The vast majority of online platforms and apps where people earn money will now have to report a 1099-K straight to the IRS.
Just in case you were worried that big government power wasn’t going far enough, we can now make sure every dollar and cent is accounted for.
Creators! Despite common misconception, you’re legally required to report any and all income to the IRS. Businesses just don’t have to file a 1099 if they paid you less than $600. What you do with the info is up to you. I just know there’s a digital trail of everything out there.
— Shibby120 {Zelda Stream Sun 8pm CST!} (@Shibby120) April 16, 2022
What Was the Law Before?
The law before this change has been that businesses only had to give the IRS a 1099-K if they had over 200 transactions and earnings of over $200,000.
So, this is a significant tightening up of the rules.
Congress has already been working behind the scenes to tighten up tax law. Democrats are very focused on making sure every small timer online or driving an Uber a couple of days a month is paying up.
Where is all this tax money going, anyway? Certainly not to protect our southern border.
My latest: Done with 2021 tax? Now look at a huge change for 2022.
Now platforms like eBay and Airbnb must send the IRS 1099-K forms reporting income for each seller, reseller, & gig worker earning above $600, not $20,000 or more.
Get ready now! https://t.co/i9PaScUgZJ
— Laura Saunders (@Saunderswsj) April 15, 2022
