Under orders from President Biden, the IRS is cracking down on payments Americans receive through third-party apps and is now requiring Venmo, PayPal, and Cash App to report transactions if they exceed $600 in a single year.
The new rules are intended to allow the federal government to snoop on small businesses and ensure that they are paying every penny of their required tax payments.
While businesses were always required to self-report such income to the IRS, many don’t keep records of small transactions, thus giving the IRS room to say that they need to step in.
Payment apps were previously required to send users 1099-K forms if their gross income was either more than $20,000 or if they had more than 200 transactions in one year.
Republicans have sharply criticized the new rules, saying that the last people who need to have the government’s noose tightened further around their necks are those that are already struggling to keep their businesses afloat.
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