Users of cash apps like Venmo, PayPal or Zelle for business transactions will soon have to report transactions of more than $600 to the IRS under a new.
Starting January 1, 2022, those who fall into the $600 or more cash apps business transaction threshold, will receive a Form 1099-K.
Previous to the new rule, business transactions were only reported if they were more than $20,000.
However, if you use the cash apps for personal transactions you won’t be affected. The new law will require the apps to report aggregate business transactions to the IRS.
According to a report by WDSU 6, the change in the way third-party payment networks report money exchanged on these platforms was prompted by language in the American Rescue Plan.
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