The IRS is Coming For You: What the Biden Administration’s Tax Revamp Means for Americans
While our government struggles to conduct efficient elections, the IRS will become more thorough. With the Biden administration comes a new push to revamp the Internal Revenue Service (IRS). It’s no secret that Americans are already paying more at the pump, grocery store, and pretty much everywhere else. But what many don’t know is that the IRS is also planning to nickel and dime 300 million Americans if they have made over $600 on Venmo or other digital payment platforms. It’s not just big corporations who should be worried about this IRS revamp either; it’s the little guy as well. Read on to learn what you need to know about this major change from the Biden administration.
How Big Corporations Differ From Small Businesses and Individuals
When it comes to the effect of this new IRS revamp, there will be a large difference between how it affects big corporations versus small businesses and individuals. Big corporations typically have an abundance of resources when it comes to fighting the IRS in court; they can hire lawyers, bookkeepers, and accountants, among other professionals. On the other hand, small businesses and individuals often do not have these same resources—which makes them sitting ducks for this new revamp from President Biden’s administration.
The New Regulations Around Making Money Through Digital Payment Platforms
Under President Biden’s new tax plan, most people who make money through digital payment platforms like Venmo or Cash App must report any payments over $600 per year. This means that if you make money via one of these platforms—whether it be through side gigs or online jobs—it must be reported as income at tax time. Failure to do so could result in hefty fines from the IRS as well as potential jail time. This is why it is important to understand your taxes—even if you don’t completely understand all aspects of filing taxes yourself—and reach out for help if necessary.
What Will Happen If You Don’t Follow These Regulations?
Suppose you fail to follow these regulations by President Biden’s administration and the IRS. In that case, you could face hefty fines from the IRS as well as possible jail time, depending on how far back your income goes unreported. The new regulations are strictly enforced, and any discrepancies will be found by their investigative teams, trained specifically to find loopholes in taxpayers’ returns. Therefore, it is important that you pay attention to these changes in order to ensure that your taxes are properly filed and accounted for each year according to law. The bottom line is that with President Biden’s overhaul of the Internal Revenue Service (IRS), individuals who earn income through digital payment platforms or risk facing hefty fines and even potential jail time if discrepancies are found by investigative teams set up specifically for finding loopholes in taxpayers’ returns.
So if you got paid over $600 on Venmo this year, now is a better time to brush up on your tax knowledge or hire a professional accountant and get ahead of any issues that might arise come tax season.
While our election process is getting laxer and more inefficient, the new IRS is not. The new IRS isn’t taking any chances when it comes to getting it’s due back from American citizens – big or small – so don’t let yourself become an easy target! Maybe our election process should take a page from the IRS. Perhaps then we could see accurate audited election results.
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