Beginning this year, taxpayers need to prepare to report transactions exceeding $600 that are received through Venmo, PayPal and other cash apps to the IRS.
posted online, the IRS warned small business owners about the $600 threshold for receiving Form 1099-K for third-party payments exceeding $600.
Democrats made the change in March 2021, when they passed the American Rescue Plan without any Republican votes. Now, a single transaction over $600 will trigger the form. The change is intended to crack down on Americans evading taxes by not reporting the full extent of their gross income. However, critics say that it amounts to government overreach at its worst and that it could ultimately hurt small businesses.
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