venmo/zelle/traceable shit

[TexomaCowboy]

Originally Posted by HenrySwanson

It's more about wondering what kind of records they are keeping. I believe venmo and zelle are auditable by the IRS. If thats true wouldn't this be a risk for all of us eventually if the rumor about them hanging on to our screening info is true as well?

Currently, third-party payment company sends a 1099 to the IRS & the business when over 20,000 is transacted in a year.
the law that lowers the threshold to 600 goes into effect for FY 2024.

In this case, the "business" that would be 1099'd is the Studio. Cash-based businesses, like sellers on eBay, Amazon, as well as sex-based services, pay minimal or zero taxes. If Studios used Zelle/Venmo/etc,...at the end of the year, they would receive the 1099 and have to report that on their Fed taxes. If Studios pay Income Tax on all of their earnings, they would avoid the danger of being charged with Tax Evasion & Money Laundering for them, but their fees to us would increase correspondingly to cover the taxes. So just imagine how much more we would have to pay to walk through the door...what's your Fed Tax rate...30%???

Can the IRS be used by the Gov't to force a business like Zelle to disclose information about you and me? Based upon empirical information...that's a big Hell Ya!

[bigdickbigmoney]

Whats the difference 2024 and fiscal year 2024?

[HenrySwanson]

Damn dude, thx! So keep it cash, keep it cool.

[bigdickbigmoney]

Originally Posted by TexomaCowboy

Currently, third-party payment company sends a 1099 to the IRS & the business when over 20,000 is transacted in a year.
the law that lowers the threshold to 600 goes into effect for FY 2024.

In this case, the "business" that would be 1099'd is the Studio. Cash-based businesses, like sellers on eBay, Amazon, as well as sex-based services, pay minimal or zero taxes. If Studios used Zelle/Venmo/etc,...at the end of the year, they would receive the 1099 and have to report that on their Fed taxes. If Studios pay Income Tax on all of their earnings, they would avoid the danger of being charged with Tax Evasion & Money Laundering for them, but their fees to us would increase correspondingly to cover the taxes. So just imagine how much more we would have to pay to walk through the door...what's your Fed Tax rate...30%???

Can the IRS be used by the Gov't to force a business like Zelle to disclose information about you and me? Based upon empirical information...that's a big Hell Ya!

Someone I talk to here told me he booked the 300 once with cashapp and once with venmo. Wondering if he's "safe". He said like 600 is a very small fish in a huge pond so he's not worried.

Bro, if you're reading this, you know who you are and should prob use cash.

[AsianP]

Originally Posted by SpringFest

It is studios that are 300+, so lunar palace is fine

and where Pimps are residing (Michiko, 4 seasons, k-fest).
Unless you want to keep paying pimps for their fake reviews and bumps.
Should I start new thread in AMP section?

[TexomaCowboy]

Wondering if he's "safe". He said like 600 is a very small fish in a huge pond so he's not worried.

Ya, he's safe (relatively), cuz it's CashApp that sends the 1099 to the IRS and the Studio that accepts CashApp, after the threshold has been crossed. Because of Tax implications, the Studio may refuse to do that in the near future.

But if the IRS wanted to, they could force CashApp to identify the user and that would be defined in the subpoena. But lots of subpoenas these days are ambiguous and far-reaching. But still, your friend is safe. The IRS wants taxes from businesses that are avoiding taxes, and getting Zelle & Venmo to report on money transfers is their attack route. So they are going after eBay and Amazon sellers and any other cash businesses.

[Darkloveofasians]

I think they’d be more worried about who is receiving the money vs who spent it, at least from a tax standpoint

[bigdickbigmoney]

Originally Posted by TexomaCowboy

Ya, he's safe (relatively), cuz it's CashApp that sends the 1099 to the IRS and the Studio that accepts CashApp, after the threshold has been crossed. Because of Tax implications, the Studio may refuse to do that in the near future.

But if the IRS wanted to, they could force CashApp to identify the user and that would be defined in the subpoena. But lots of subpoenas these days are ambiguous and far-reaching. But still, your friend is safe. The IRS wants taxes from businesses that are avoiding taxes, and getting Zelle & Venmo to report on money transfers is their attack route. So they are going after eBay and Amazon sellers and any other cash businesses.

I wonder how they're gonna go after my barber who works out of his garage and only accepts Cashapp and Venmo

[TexomaCowboy]

Maybe your barber already reports his income on his 1040?

Otherwise, he will know around the end of January or early March. That's when the 1099's are sent out. If he doesn't go over 20,000 with CashApp or 20,000 with Venmo, then neither of them will send him a 1099. In 2024, the threshold drops to 600.

If he doesn't currently get 1099's for those 3rd Party transaction companies, I would think he will for Tax Year 2024. He might have to raise his prices to cover any taxes he currently avoids.

[Bigtexguy42]

Originally Posted by bigdickbigmoney

Whats the difference 2024 and fiscal year 2024?

When someone says 2024 usually mean the calendar year. If it is fiscal, that means that the company or government in this case is operating on a different year. You usually need a good business reason for this, so it is a lot of cyclical businesses that do this. The majority of colleges are on a June 30 fiscal year because it's between semesters for example. The federal government year end is 9/30, so fiscal year 2024 would run from 10/1/23 to 9/30/24. Fiscal year usually means fiscal year end. I guess calendar year does too but it's all in the same year haha.

Thank you for coming to my TedTalk

[TexomaCowboy]

Well said BigTX (I've got one of your trailers...24 long flatbed).

Clear explanation with good examples.

Sounds like you're a professional at something...LOL

[Karimhunta458]

Originally Posted by aJohnDough

Coming sooner than later

https://www.instagram.com/reel/CyJdJ...c4MTIwNjQ2YQ==

Wtf 5$ fee??? Thats a big mac

[Chung Tran]

Originally Posted by janusinstereo

Unless they're paying you then it's not a big deal.

A lot of chatter, and this is the only good answer.

[TexomaCowboy]

The discussion was about Studios accepting Zelle & Venmo. If a Studio did that on a regular basis, they will easily exceed the reporting limit and will be 1099'd.

They would then have to pay taxes, which would then get passed on to you and me in the form of higher rates. And that's what would make it a big deal, like potentially a 30% increase.

Again, the topic was about the convenience of using Zelle & Venmo, and if that would be offered as a payment option. I really doubt that they would want to have some of that income reported.

You have financial experience...how do you see 3rd party payment processing work at a Studio or Amp?

[Chung Tran]

Originally Posted by TexomaCowboy

Again, the topic was about the convenience of using Zelle & Venmo, and if that would be offered as a payment option. I really doubt that they would want to have some of that income reported.

You have financial experience...how do you see 3rd party payment processing work at a Studio or Amp?

I don't think it works, for the reasons you stated. Except for Zelle, for the reason mentioned upthread. They never hold a payment, they are a simple transfer agent. They do not fall under the definition of 3rd party processor. In theory One could skirt reporting rules with venmo, by sending ''friend/family'' payments, but if you are paying for a session as a reportable business transaction, venmo would need somebody's Tax I.D. or Social Security Number to report as a Payee. I can't imagine any spa or studio setting that up.