ST. LOUIS – For those using peer-to-peer (P2P) payment apps such as Venmo, PayPal or Cash App for business, payments received of $600 or more in a calendar year must now be reported to the ‘IRS.
This new law came into force at the beginning of 2022, however, it will not apply for the 2021 tax season, according to a Fox Business article. For those who reach the new threshold this year, P2P payment platforms will submit 1099-K tax forms during next year’s tax season.
If users do not receive a 1099-K tax form, they are still required to report their income to the IRS.
P2P payment platforms were previously required to send their users 1099-K tax forms to those who received more than $20,000 in gross payment volume and more than 200 separate payments in a calendar year for goods and services, according to a article by Intuit TurboTax.
The Fox Business article indicates that payment apps may request additional information from users in order to properly report their transactions, including Employer Identification Number (EIN), Individual Tax Identification Number (ITIN ) or Social Security Number (SSN) if it is not already. checked in.
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