New IRS tax rules on Venmo, PayPal payments over $600 could ‘overburden’ Americans – By Megan Henney (FOX Business) / Dec 20, 2022
Tax advocacy group urges Treasury to delay implementing new reporting rules
A new tax reporting requirement targeting Americans who made money online through third-party apps like Venmo or PayPal could cause serious confusion for taxpayers, according to an industry group that is calling on the government to immediately delay implementing the rule.
The National Association of Tax Professionals (NATP) this week urged the Treasury Department to wait and make some modifications before it implements a rule requiring taxpayers to report to the IRS transactions of at least $600 that are received through third-party payment apps like Venmo, PayPal and Cash App.
Third-party payment processors will now be required to provide both users and the IRS with Form 1099-K if they add up to more than $600 over the course of the year. Previously, the payment apps were required to send users Form 1099-K if their gross income exceeded $20,000 or they had 200 separate transactions within a calendar year. Democrats made the change in March 2021, when they passed the American Rescue Plan without any Republican votes.
