The American Recue Plan passed in March 2020 requires cash apps like Venmo, PayPal and Zelle to report transactions over $600. Previously, the minimum reporting thresholds was payments that exceed $20,000, AND more than 200 such transactions.
All the “fact” verifiers are misstating the objection. The objection isn’t paying a tax – its’ the REPORTING. Many taxpayers are going to get caught not reporting – nontaxable income, because they will ignore the notice because the reported transactions are not taxable. But, how will the IRS know the transaction isn’t taxable if the taxpayer doesn’t qualify it?
Tax prepares and tax resolution companies are going to LOVE this change.