Congressman Wittman distributed an email on Feb. 22 to his constituents noting that all business transactions using third-party payment services (e.g., Paypal, Venmo) would have to notify the IRS of any amounts paid over $600/year to any single business.
This is an attempt by the IRS to recoup part of the more than $100 billion/year in unpaid taxes that has occurred. A lack of this type of reporting income also impacts local and state tax revenue.
The tone of Congressman Wittman email is that this is an invasive and burdensome requirement and penalizes small businesses and self-employed individuals.
Why should we care? The only people who should be worried about this new requirement are those who weren’t reporting all their income on their tax returns. Those of us who pay our legitimate federal, state and local taxes should welcome its implementation.
Phil OlekszykGloucester, Va.
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