Mortalpawn
Two Pair
I think the issue here is that the IRS is requiring this year that anyone who accumulates receipts for a year totaling more than $600 now get a 1099 form from paypal which means it has to go on your tax return as income. The limit used to be $20,000. It is pretty easy to accumulate more than $600 in a year.
I'm not certain, but FF may be excluded from that total. However the IRS has been pressuring paypal (and others) to crack down so that is likely why large FF payments are generating additional scrutiny on the platform.
The new rule is not just a paypal thing - its being applied to all online payment services (Zelle, Venmo, etc...)
My guess is that this will make it increasingly difficult to do group buys and online transactions in the future as the IRS considers any money you receive as income until proven otherwise. Also as of last week we're adding another 87,000 IRS agents which will make things even more interesting in the future.
I'm not certain, but FF may be excluded from that total. However the IRS has been pressuring paypal (and others) to crack down so that is likely why large FF payments are generating additional scrutiny on the platform.
The new rule is not just a paypal thing - its being applied to all online payment services (Zelle, Venmo, etc...)
My guess is that this will make it increasingly difficult to do group buys and online transactions in the future as the IRS considers any money you receive as income until proven otherwise. Also as of last week we're adding another 87,000 IRS agents which will make things even more interesting in the future.