Venmo, PayPal and Zelle must report $600+ in transactions to IRS

[HAL1000]

As of Jan. 1, mobile payment apps like Venmo, PayPal, Zelle and Cash App are required to report commercial transactions totaling more than $600 per year to the Internal Revenue Service.

The change to the tax code was signed into law as part of the American Rescue Plan Act, the Covid-19 response bill passed in March.

Previously, these mobile payment apps only had to tell the tax authorities when a person had over 200 commercial transactions per year that exceeded $20,000 in total value, the IRS said.

Starting Jan. 1, the IRS said, if a person accrues more than $600 annually in commercial payments on an app like Venmo, then Venmo “must file and furnish a Form 1099-K” for them — reporting on all the commercial income they collected through the app.

The tax-reporting change only applies to charges for commercial goods or services, not personal charges to friends and family, like splitting a dinner bill.

https://www.nbcnews.com/news/venmo-paypal-zelle-must-report-600-transactions-irs-rcna11260

[peanut56]

In their defense I'm sure not all businesses have been reporting revenue being recieved through these apps. At the same time they could also just automatically collect taxes since they know how much a person or businesses owes instead of the "we know how much you owe, but we will not tell you, and if you get it wrong straight to jail" approach they've utilized for since my entire life.

By no means and I'm defending the IRS for its predatory behavior towards small businesses and the poor over taxes since the small business and the poor don't have the money to out litigate the IRS like wealthy companies and people.