10/15/2023 0 Comments Download venmo irsAny transactional payments for services, products, or tips however will be included. Paying your friend back for dinner won’t contribute towards the $600 threshold. To clarify, this reporting requirement only applies to business transactions, not transactions personal use. Now, the dollar amount of business transactions is just $600, a mere 3% of the previous threshold. Previously, if you or your business received more than 200 business transactions in a year totaling over $20,000, you were required to file a Form 1099-K with the IRS. Included in the American Rescue Plan, passed in 2021 and put into effect at the start of 2022, is a new law changing tax reporting requirements for third-party payment apps. Apps like PayPal, Venmo, or CashApp have made it much easier for small businesses to take payments for their services, but as far as the IRS is concerned, they have also made it easier for small businesses to commit fraud.
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