Third Party Payment Companies and New IRS Guidelines For Payments Over $600
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Third Party Payment Companies and New IRS Guidelines For Payments Over $600 Hello, I hope everyone is doing well. In our club, we use Venmo to send the treasurer our monthly contributions for her to deposit in the investment account. A new guidance came out that states for goods/services over $600, the payment company will send the info to the IRS. Even though it states "goods/services", it doesn't state how they will differentiate it from something else. We don't want to put our treasurer in a position where she is being sent additional 1099 because they think she has a business. The only alternative option,we can think of, is to just start mailing her checks. Are any other clubs concerned or will be effected by this new guidance? If so, what changes are you going to make or are you not that concerned. Thanks for your input and have a good night. Chevelle Most of our club does direct deposit or transfers to the brokerage account. We have TDameritrade and one member sends a photo of her check as she had issues with the direct deposit going to her personal account. Sent from my iPhone > On Dec 7, 2021, at 6:29 PM, Chevelle A. Williams via bivio.com <user*39109700001@bivio.com> wrote: > > Hello, > I hope everyone is doing well. In our club, we use Venmo to send the treasurer our monthly contributions for her to deposit in the investment account. A new guidance came out that states for goods/services over $600, the payment company will send the info to the IRS. Even though it states "goods/services", it doesn't state how they will differentiate it from something else. We don't want to put our treasurer in a position where she is being sent additional 1099 because they think she has a business. The only alternative option,we can think of, is to just start mailing her checks. Are any other clubs concerned or will be effected by this new guidance? If so, what changes are you going to make or are you not that concerned. Thanks for your input and have a good night. Chevelle Isn't Venmo jumping the gun. I don't think this has passed congress. We use Bill Pay, available at most banks and ACH. Both work very effectively if you assign the cent identifier to each member. -----Original Message----- From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Chevelle A. Williams via bivio.com Sent: Tuesday, December 7, 2021 9:29 PM To: club_cafe@bivio.com Subject: [club_cafe] Third Party Payment Companies and New IRS Guidelines For Payments Over $600 Hello, I hope everyone is doing well. In our club, we use Venmo to send the treasurer our monthly contributions for her to deposit in the investment account. A new guidance came out that states for goods/services over $600, the payment company will send the info to the IRS. Even though it states "goods/services", it doesn't state how they will differentiate it from something else. We don't want to put our treasurer in a position where she is being sent additional 1099 because they think she has a business. The only alternative option,we can think of, is to just start mailing her checks. Are any other clubs concerned or will be effected by this new guidance? If so, what changes are you going to make or are you not that concerned. Thanks for your input and have a good night. Chevelle Hi, I have been in a couple of clubs over the last 16 years and a treasurer for a good share of that time. Both clubs have their partners make their monthly partnership capital contributions directly to our broker via bill pay or ACH. In both clubs, we use the "Penny" payments system described at bivio's website - https://www.bivio.com/site-help/bp/Penny_Payments_Help. This has worked well and efficiently for us over time. -----Original Message----- From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Chevelle A. Williams via bivio.com Sent: Tuesday, December 7, 2021 6:29 PM To: club_cafe@bivio.com Subject: [club_cafe] Third Party Payment Companies and New IRS Guidelines For Payments Over $600 Hello, I hope everyone is doing well. In our club, we use Venmo to send the treasurer our monthly contributions for her to deposit in the investment account. A new guidance came out that states for goods/services over $600, the payment company will send the info to the IRS. Even though it states "goods/services", it doesn't state how they will differentiate it from something else. We don't want to put our treasurer in a position where she is being sent additional 1099 because they think she has a business. The only alternative option,we can think of, is to just start mailing her checks. Are any other clubs concerned or will be effected by this new guidance? If so, what changes are you going to make or are you not that concerned. Thanks for your input and have a good night. Chevelle
We do auto deposit to TD Ameritrade, each person has a cents assigned to them, ie if someone is assigned 32 cents, all their deposits are $xx.32 (a $50 deposit would be $50.32) that way the treasurer know who deposits what
From: club_cafe@bivio.com <club_cafe@bivio.com> on behalf of Martin J Eckerle via bivio.com <user*12801300001@bivio.com>
Sent: Tuesday, December 7, 2021 4:38:09 PM To: club_cafe@bivio.com <club_cafe@bivio.com> Subject: RE: [club_cafe] Third Party Payment Companies and New IRS Guidelines For Payments Over $600 Isn't Venmo jumping the gun. I don't think this has passed congress. We use
Bill Pay, available at most banks and ACH. Both work very effectively if you assign the cent identifier to each member. -----Original Message----- From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Chevelle A. Williams via bivio.com Sent: Tuesday, December 7, 2021 9:29 PM To: club_cafe@bivio.com Subject: [club_cafe] Third Party Payment Companies and New IRS Guidelines For Payments Over $600 Hello, I hope everyone is doing well. In our club, we use Venmo to send the treasurer our monthly contributions for her to deposit in the investment account. A new guidance came out that states for goods/services over $600, the payment company will send the info to the IRS. Even though it states "goods/services", it doesn't state how they will differentiate it from something else. We don't want to put our treasurer in a position where she is being sent additional 1099 because they think she has a business. The only alternative option,we can think of, is to just start mailing her checks. Are any other clubs concerned or will be effected by this new guidance? If so, what changes are you going to make or are you not that concerned. Thanks for your input and have a good night. Chevelle |
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