p.11 #1 · Alert: Uninsured payments and tips for safe transactions
NEW (at least for me) Paypal SCAM
So, I post a lens for sell on Facebook Market place. The only reason I've used in the past is for face-to-face local pick up.
Buyer comes to me via messenger and says use "request funds" option on PayPal. Never used that method before, but went along although suspicious. So, I sent "request funds" from William Muldoon (sounds like a cartoon character). Shortly afterwards I receive an email from Paypal stating that the funds are being held until I provide proof of shipping. Once provided, funds will be released to my account. At this point, something doesn't smell right. I go back to the email and the ping the address. Low and behold the Paypal address was "tracking.confirmation@seznam.cz". Email sure looked authentic.
By using the "request funds" option, the scammer got my full name and email address. Using that info, the fake email looked like a legitimate Paypal notice.
So, I guess the old adage still holds, if it doesn't look right, it's probably not.
p.11 #2 · Alert: Uninsured payments and tips for safe transactions
Wow, so many incredible stories. I have been inactive in trading photo gears for many years, but only recently became active again. The world seems to have changed a lot (for the worse) for the last decade and it makes me feeling old
p.11 #3 · Alert: Uninsured payments and tips for safe transactions
I placed a WTB listing yesterday and received an email, responding to my add, but directing me to an email address. The "seller" claimed he could not use PayPal because his account had been "hacked" and implied I should send funds in some other manner. I asked for pictures of the item and he responded. His photos looked photoshopped and taken from a stock photograph. Please be careful.
p.11 #4 · Alert: Uninsured payments and tips for safe transactions
I am looking at a camera for sale from a very established member (400+ "great" ratings) but I hesitate because of the payment which is on the listing as, "Price includes shipping but not the Payment fees. I won't accept PayPal G&S. Can accept Zelle, Venmo or PayPal F&F." Is there a payment method that protects me that is not Paypal G&S?
p.11 #7 · Alert: Uninsured payments and tips for safe transactions
I have almost 10,000 paypal transactions from an Ebay business I had and now if they think price is too high or at risk, they hold your money. I think I'm a pretty safe bet
p.11 #8 · Alert: Uninsured payments and tips for safe transactions
Just looking at an item for sale where the seller will only take Paypal F&F or Zelle and the price is over $600.
Just wondering about this person's motivation; and how many other sellers are now insisting on these or similar terms (that avoids receiving a 1099 form from the company handling the transaction).
My guess is that it isn't the 3% charge that bothers them all. After all, they could add that fee in to their sales price and it would barely be noticed.
My guess is that some of them realize that if the Paypal transaction is a business one, then it will be reported to the IRS at the end of 2023 under the new reporting rules. The IRS now requires Paypal to issue a 1099 income form to a seller (copy to the IRS) for annual sales of $600 or more, even if only one transaction is involved. This particular seller had made several hundred transactions on this web site which suggests they may have a side business of buying items at one price and selling at a higher one and therefore may be producing taxable income that can no longer be hidden. Note that anyone selling an item they bought new and are selling at a lower price and received a 1099 form will not have taxable income; but that seller will have to account for the transaction on their tax return, which will be a nuisance and an extra expense if the seller uses a paid tax preparer.
As only a buyer of gear on Fred Miranda so far, I anticipate this new IRS reporting rule will result in higher prices for me and a smaller selection of items to choose from as I won't buy without the insurance.
p.11 #9 · Alert: Uninsured payments and tips for safe transactions
Yes, that is part of the reason. But, you won't have to pay tax on it if you can show you are taking a loss on the item. How you can show this? I'm not sure. But, it's a bit crazy that the federal government is overstepping with this new tax code.
p.11 #10 · Alert: Uninsured payments and tips for safe transactions
If you receive a 1099-K form for a business Paypal transaction for more than $600 in 2023, then take a look at https://youtu.be/F5Ve0z_4Jgk for a reasonable idea of how to handle this on your 2023 tax return in 2024. Noel Lorenzana who did this and some related videos mentioned in this video explains how he believes it should be handled. I don't know if he is absolutely correct, but as a volunteer tax preparer it looks pretty reasonable to me. By the way, he mentions in the video that the new rule requiring Paypal (and others) to send out 1099-Ks for single transactions of $600 to start with 2022 tax returns. This rule was delayed a year and starts with 2023 income (see his other YouTube video at https://www.youtube.com/live/MGlCYsIYoXo?feature=share)
Alert: Uninsured payments and tips for safe transactions
