Yeah, that was a surprise. Totally took me off guard. But I sold off some tack through ebay and Paypal, plus sent money and got money when buying my horse. Then I got notified that these transactions will be reported on a 1099.
Not sure what the motivation is. Are there people laundering money through Paypal? Or paying gig workers that way?
So now I’m thinking cash only from one hand to another.
The motivation is that people were not self-reporting substantial amounts of taxable income when filing their returns. Previously you could bring in up to $20K or up to 200 transactions annually before it would be reported to the IRS.
From what I read, it’s about having to pay taxes. But if you sell something for a loss you might not have to. Like selling a $5000 saddle for $3000 but it most likely will need proof. Taxman is knocking on the door
Scammers are everywhere now Facebook, eBay, Craigslist, etc. Best way is to have PayPal and send them an invoice to pay from eBay. If it’s a scam they will send a fake email with a fake email address in reply saying like this “A temporary hold has been placed on this transaction! Why is your payment pending? In regards to the new PayPal Payment policy, we have fully debited the amount (above) from the buyer’s account and in order to complete this transaction and get the funds credited into your account get back to us with a photo shot of the receipt of postage with the shipment tracking number.” Only thing you can do is DO NOT CLICK ON ANY LINKS, report them to Facebook, and send the email to PayPal that it’s fake.
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