If You Have a Side Business, the IRS Is Coming for You

If You Have a Side Business, The IRS Is Coming for You

(RightWing.org) – In 2020 and 2021, millions of Americans were out of work for months, or longer. It gave people an opportunity to think about what they want out of life and if their jobs bring them meaning and fulfillment. So, being the good Americans they are, they dipped their toes into the entrepreneurial journey and started a small business or a side hustle as means to a future endeavor.

Before the pandemic, the government was already spending at record levels, and the national debt was climbing into unchartered territory. Democrats love to talk smack about going after billionaires and big businesses who may evade taxes so the government can pay for its massive government programs. Yet, it’s the little person they continue to target who is hard-working, honest, and just wants a crack at the American dream.

Congress Empowered IRS Against Extremely Small Businesses

In 2021, approximately 5.4 million Americans started a business. That’s primarily due to apps that lowered the barrier of entry. One might sell crafts, become a hairstylist, develop software, or perhaps turn a hobby into a small business. Embedded in the Democratic go-it-alone American Rescue Act was a tax reporting provision for app companies authorizing the IRS to target your side hustle or very small business.

When the IRS targets a large business like Amazon or Walmart, it’s often a protracted process that may or may not yield some money for the government. In some cases, it may cost the government so much money to acquire a little bit of cash that they don’t even bother. After all, big businesses have massive financial resources, accountants, and attornies to help them thwart off the IRS.

Really, small businesses are sitting targets and easy prey for the IRS. As of January 1, if you sell a good or service and use a service such as Paypal, Venmo, Etsy, Airbnb, or the scores of other apps and receive payments totaling $600 or more, you’ll be getting a tax form. Sadly, Congress changed the reporting amount from $20,000 and 200 transactions.

So, what does that mean to you? It means that Democrats don’t trust you to self-report your taxable income. Now that they’ll know who you are and how much you’re earning through the app companies, you may be more susceptible to an IRS audit to ensure you’re paying your fair share.

Isn’t that nice of them?

Why Is Congress Targeting Very Small Businesses?

During the pandemic, lawmakers opened the line of credit and increased the national debt by a record $1.7 trillion in the first half of the 2021 fiscal year (October 2020 through May 2021). Since then, the government authorized $900 billion in COVID relief in December 2020, and $2 trillion in the partisan American Rescue Act in March 2021.

Here’s the secret many may not know: the government doesn’t earn money. Businesses earn money, and the government takes some from them to pay for their spending habits. Where lawmakers are concerned, your wallet is their piggy bank.

So, if you have a new, very small business or a side hustle, welcome to the world of government regulations, rules, and taxes.

Don Purdum, Independent Political Analyst

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