IRS warns Americans

IRS warns Americans over $600 threshold to report Venmo, PayPal payments

The Internal Revenue Service is reminding tax filers to prepare to report transactions of at least $600 that are made through so-called “third-party” facilitators such as Venmo and PayPal.

The agency on Tuesday posted an explainer warning American business owners earning $600 or more per year on payments that are received through apps such as Cash App, Venmo, and PayPal that they will receive a tax form known as Form 1099-K.

The IRS is interested in obtaining data pertaining to transactions involving part-time work, side gigs, and selling goods, according to the agency.

The rule does not apply to noncommercial payments like reimbursing someone for food or rent or other one-off transactions such as selling an old piece of furniture, according to accountants.

Before this year, the threshold for filing a Form 1099-K report was at least 200 transactions totaling an aggregate of at least $20,000.

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