Monday November 7, 2022 – This space has been reporting on the Cash App law created by the American Rescue Plan of March 2021. The law changed the tax reporting requirements for third-party payment apps from 200 Transactions AND $20,000 or more to $600 or more, no matter the number of transactions.
This change went into effect on January 1, 2022. That means the new rule won’t really come to light until February 2023 when the information Returns must be delivered to taxpayers. Third-party payment apps, like Venmo, paypall, Cash app, etc. are subject to this rule.
But, early on, Zelle let consumers know they were not subject to this new rule. Because Zelle is not a third-party payment app. Instead, Zelle is a bank-to-bank payment service not subject to the 1099-K reporting rules.
Attorney Steven A. Leahy will take a close look at Zelle’s claim on Today’s Tax Talk.
https://www.bloomberg.com/news/articles/2022-11-07/zelle-becomes-loophole-for-business
Steven A. Leahy is a tax attorney in Illinois. He was the host of the long-running popular Radio Show “The IRS Radio Hour” heard every Sunday evening on AM 560 The Answer. Attorney Leahy is also the author of the book “Deal With Your IRS Problems Today!” You can get a FREE copy of this important book at FreeIRSBook.com. Or Call 24/7 (312)664-6649
