Post by farmrbrown on Jan 6, 2022 6:57:36 GMT
www.wmar2news.com/matterformallory/new-law-impacting-peer-to-peer-payment-app-users-and-taxes
This new year, there’s a new federal law impacting peer-to-peer payments apps and taxes, which includes services like Zelle, Venmo, Cash App, and PayPal.
It’s not a new tax, rather a change in tax reporting laws. Congress is cracking down on business dealings that don't share their earnings with the government.
Previously, the IRS required payment apps to report payments if the account holder’s payments exceeded $20,000 and had more than 200 transactions in the year. Now, it’s down to $600 total, regardless of the number of user’s transactions.
The change, which went into effect January 1, 2022, was introduced in the American Rescue Plan Act of 2021 and amended some sections of the Internal Revenue Code. Third-party payment networks are now required to send users 1099-K forms for transactions made by customers with $600 or more in annual gross sales.
It’s not a new tax, rather a change in tax reporting laws. Congress is cracking down on business dealings that don't share their earnings with the government.
Previously, the IRS required payment apps to report payments if the account holder’s payments exceeded $20,000 and had more than 200 transactions in the year. Now, it’s down to $600 total, regardless of the number of user’s transactions.
The change, which went into effect January 1, 2022, was introduced in the American Rescue Plan Act of 2021 and amended some sections of the Internal Revenue Code. Third-party payment networks are now required to send users 1099-K forms for transactions made by customers with $600 or more in annual gross sales.
