Ok friends and family isnt taxable. That means when they send you a tax bill, you have to prove that.
Alot of people are going to think they can skirt the system by taking goods payments via FF payment.
Just because you clicked that button doesn't mean there is some magical thing that keeps the IRS out of it.
Its not political speak to say that they just hired 87,000 IRS agents.
They didn't hire them to twiddle thumbs all day.
My sister sent me 90$ to pay for half my airfare, that is not taxable income...lol, and I don't nor won't have to prove a thing. I've done such things for my entire life.
The IRS only knows what is reported to them, forgoing any audits, and even then, they won't audit your friends and family transactions on paypal unless you're clearly abusing that payment system for the transactions of goods and services, likewise with Zelle, cashapp, venmo...
Anyone using those systems to evade taxes is not too bright.
-Matt
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