In brief my wife and I are bona fide residents of PR and my wife sells a lot (ie more than $600 a year) of stuff on eBay and the like (Postmark, Facebook Marketplace etc).
According to this https://www.govinfo.gov/content/pkg/CFR-2012-title26-vol13/pdf/CFR-2012-title26-vol13-sec1-6050W-1.pdf it sould seem we have a foreign address as United States is defined by IRC 7701(a) as the 50 States and DC.
I also read https://www.irs.gov/instructions/i1099k and https://www.irs.gov/irb/2011-37_IRB and am still a little unclear. I asked our CPAs and tax attorneys and they are unfamiliar with the new rules.
Would anyone know whether bona fide residents of PR should expect 1099-Ks next year for 2023? Also if Venmo or someone interprets the rules to include PR and sends us, wouldn’t this still be PR-sourced income under IRC 933?
I’m not overly concerned about US tax liability on $20,000 of sales but am more concerned about maintaining PR as my tax home exempt from US taxes on all PR-sourced income and especially capital gains. I think I’m just overthinking this but could anyone please share insight?