President Joe Biden promised Americans that he wouldn’t ever increase taxes on the middle class.
But now, after two years of a nonstop spending spree the Democrats are realizing that they need more revenue.
That’s why this leading expert is warning Americans that Joe Biden’s IRS is about to make this move that will affect millions.
Federal government targets peer-to-peer commerce
A new IRS rule allowing the out-of-control agency to take more of your money will begin to affect taxpayers in this year’s tax season.
The IRS will be looking for any transaction greater than $600 and if you can’t provide the right explanation—they will attempt to tax you for the income.
The rule will be focused on peer-to-peer commerce and payments.
It will mean more money to pay out for people using services like Venmo, PayPal, Etsy, Facebook marketplace, and even AirBnB.
Bruce Wiley, a noted tax attorney, says for unexpecting taxpayers it will feel like they were hit by a “truck.”
Willey says that “most Americans are about to get run over, and they have no idea” and he’s warning people to be prepared or “things could get pretty ugly” for you.
The rule came out of American Rescue Plan in 2021
The controversial new rule is seen as simply a federal government “cash grab” to most experts.
The government granted themselves this new power in 2021 when Congress passed the so-called “American Rescue Plan” (ARP).
Of course the ARP hasn’t rescued anyone, except federal bureaucrats and the IRS.
Middle class Americans and small companies will be adversely effected by both the increased paperwork and the increased taxes.
Under the ARP, lawmakers made it so that companies in peer-to-peer commerce would be required to report every single transaction of $600 or more.
Previously, these organizations were supposed to report when someone had received payments of $20,000 or more.
This means that a lot more people have received 1099-k forms this year.
Online betting sites like DraftKings will be a huge focus
One of the largest sectors the government seeks to tap into is online sports betting.
The online gambling market in the United States accounted for nearly $60 billion in 2021.
The federal government wants to make sure that they are getting every penny that they can.
Though some organizations settle payments directly—others like DraftKings and FanDuel use third-party settlement services.
This legislation will force those companies to comply with the new IRS rule.
Experts suggest that Americans who place such bets should start to monitor their wins and losses more closely.
Anyone who is gambling should keep receipts and carefully record all their losses to offset any gains that they might be taxed on.
The rule won’t just impact those who have been earning additional income online.
Experts concerned it will be like a “huge fishing net”
Millions of Americans use third-party services to make shared payments.
Some examples would be paying for the sale of a vehicle, splitting your rent payment, or even paying a friend for your share of a vacation.
This rule will largely target young people who use the services, but it doesn’t stop there.
According to Willey, “it’s a huge fishing net that’s just going to sweep up a vast amount of people in America.”
The biggest concern from this will be that there will undoubtedly be a large number of 1099s that will be sent out for items that aren’t taxable income.
There’s no way to discern it without an audit.
Regardless of their tax liability, this will cost Americans more money, and it gives the IRS more power.
U.S. Political Daily will keep you up-to-date on any developments to this ongoing story.