Many of us are familiar with the fable about the scorpion and the turtle.
A scorpion, unable to swim, asks a turtle to carry it across a river. The turtle hesitates, fearing the scorpion will sting it. The scorpion assures the turtle that stinging would be illogical, as both would drown. Convinced, the turtle agrees. Midway across, the scorpion stings the turtle. When asked why, the scorpion replies, “I am a scorpion and stinging is what scorpions do.
The IRS is under attack from both President Trump and many in Congress. There is continual talk about eliminating the IRS and the income tax.
Still, the people at the IRS are ignoring this and continuing to do everything they can to further undermine what little support they have with the American people.
In an article entitled The IRS Now Knows a Lot More About What You Sell, these points were made:
- The IRS is cracking down on unreported income from online sales, with a lowered threshold of $5,000 for receiving a 1099-K tax form in 2024.
- Taxpayers who fail to report online income may face penalties.
- Solo entrepreneurs and those selling personal items online should be aware of the tax implications and reporting requirements, including deducting expenses and accounting for losses.
- Anyone who earned more than $5,000 in 2024 selling tickets, musical instruments or other goods and services online should expect to get a 1099-K tax form this month.
- Online platforms such as StubHub, Etsy and eBay previously had to send these forms only to those users who earned more than $20,000 in most cases.
- The lowered threshold means that 1099-K forms will be sent to millions more taxpayers to make sure they account for their online income on their tax returns.
- The IRS has launched an investigation into taxpayers who earned money as experts on the online platform JustAnswer looking to find those who allegedly failed to accurately report income from 2017 through 2020. At that time, JustAnswer experts such as veterinarians and mechanics were generally paid between $15 and $25 for each question they responded to.
- The tax rules for selling personal stuff online are different. If you get a 1099-K for something you sold for less than you originally paid for it, you wouldn’t owe tax, but the process of proving that you owe no tax is often costly, burdensome and time consuming.
CONCLUSION
Under the present law, if you are in the business of selling goods or services online or in a store, you need to report the net income on your federal tax return.
If you have a tax on work, then this makes sense.
However, fewer people are having garage sales, and more and more people are selling things online. Because of inflation, it is likely that selling items in an online estate sale will generate more than $5,000 in sales. It’s also likely that the purchase price of those items may have been $20,000 or more.
In that case, the seller sold the items at a considerable loss, but will still receive a 1099-K showing the $5,000 of income. Now it’s up to the taxpayer to provide evidence that there was no net income because the items sold for less than they were purchased for some years back.
The great majority of us don’t have the receipts for items purchased years ago making this an impossible task. Those who may try to dig up that documentation will undoubtedly spend a great deal of time and effort trying to establish that they owe no income tax.
One of the major problems with the income tax is that the IRS is allowed to assume that you owe income tax, and it is up to you to prove that you don’t. Another major problem is that the IRS is the one who gets to decide whether or not your proof is sufficient.
When you read about the above situation, you are likely confused and angry that Congress has allowed this abominable income tax system to not only continue but also to become more burdensome every year.
Their inaction might be more understandable if there was no alternative that would eliminate the wasted hours and expenses required under the present income tax code. However, the plain truth is that there is an alternative that eliminates the burden on individual citizens and reduces the burdens on businesses by over 90%.
This alternative is the FAIRtax—a simple and progressive national retail sales tax on the retail purchases of new goods and services.
In addition to removing the compliance burden on Americans, the FAIRtax also:
- Taxes imports and provides tax credits to U.S. exporters like all of our trading partners.
- Eliminates the need for most tariffs.
- Brings jobs back to the U.S.
- Eliminates federal taxes up to the poverty level.
- Requires no tax returns for individuals.
- Clearly shows the federal taxes hidden in the prices of the goods we purchase.
- Creates greater economic growth.
- Brings in capital that allows productivity increases and higher wages.
- Eliminates lobbyists and politicians selling tax benefits that harm the rest of us.
- ELIMINATES THE IRS!
We need to move now and put a stake in the heart of the income tax and the IRS so that they cannot be easily resurrected by a subsequent administration.
Many of you have labored tirelessly for freedom from the federal income tax and the IRS. You deserve a great deal of credit for your efforts to educate the American people on the need to fund the American government in a way that is good for America and returns freedom to the American people.
It is imperative, though, that we don’t replace the current income tax and the IRS with an alternative system that can still be manipulated by the Ruling Elite. We must let Congress and the President know that the best way to replace the income tax and the IRS is with the FAIRtax.
Make no mistake about it. The FAIRtax is a grave threat to the Ruling Elites. It will strip them of their power and their ability to control us though the tax system. Their opposition to the FAIRtax will be fierce and unrelenting. And don’t think for an instant that they won’t use half-truths, deception and downright lies in their desperate attempt to hang on to their power.
However, with the support of this President, we can finally eliminate the income tax and the IRS!!!
Of course, the best course of action is to not only repeal the income tax and abolish the IRS but to repeal the 16th Amendment as well so no future administration can ever shackle the American people with an income tax again.
We must come together and ensure that real tax reform, the FAIRtax, is not subverted by the Elites in D.C.
This will take the diligent efforts of all of us. We need your financial assistance, and we need your grass roots assistance.
If you have contacts that will allow us to get more information to President Trump about the FAIRtax please let us know.
Please email us at info@fairtax.org and we will give you some options on how you can best help us.
At a minimum, please call your Congressional representative and ask if he or she supports the FAIRtax. If so, thank him/her for their support and suggest they become a cosponsor of HR-25 if they’re not one already. If not, ask why not. If your representative claims to be unfamiliar with the FAIRtax, offer to have someone come to their office and explain it to them.
Please go to this link to invest in AFFT and help us pass the FAIRtax. It’s an investment in your and your family’s future.
THE SOLUTION—PASS THE FAIRTAX!
Why would D.C. pass the FAIRtax and give up this almost unlimited source of donations? The only way that they will is if the rest of us demand it!
Isn’t it time to end this ludicrous tax collection system and the IRS?
HELP BRING ABOUT REAL TAX REFORM AND STOP FUTURE IRS ABUSES
By contributing (investing) $10.40 per month, you help provide a financial base to AFFT. If you can make larger contributions (investments), these will be used not for salaries, as we are all volunteers, but for the needed updates to our economic studies which will be vital for all future years.
Please go to this link to invest in AFFT and help us pass the FAIRtax. It’s an investment in your and your family’s future.