As of January 1, 2022, platforms like PayPal, Venmo, and Zelle will be required to report transactions to the IRS and issue 1099-K to the taxpayer when there are commercial transactions of $600 or more. Small business owners, which are the predominant taxpayer groups that are impacted, are already required to report the income they receive from these platforms on their returns. However, the IRS will now be able to cross-reference the amounts. Those services that are marked for friends or family transfers will not be included.
Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult a tax, legal and accounting advisors before engaging in any transaction or submitting any IRS form.
Ramin Mohammad
Ramin Mohammad is a lawyer and CPA with over 15 years of experience including working in audits, teaching, and in big law. Ramin helps clients on both personal and business related tax issues ranging from a multitude of practice areas including tax structuring, planning and cross jurisdictional taxes. His client-base expands throughout the US and overseas offering tax consulting, tax planning and tax preparation.
