IRS delays new tax reporting requirement for Venmo, Money App customers

The IRS introduced Friday that it’s going to delay the rollout of latest guidelines set to decrease tax reporting thresholds for transactions companies make via third-party cost platforms reminiscent of Venmo and Money App.

In a launch, the IRS mentioned it selected to delay decreasing the brink to $600 after issues the company and the Treasury Division acquired in regards to the timeline.

The American Rescue Plan, the $1.9 trillion COVID-19 stimulus bundle that Congress handed final 12 months, requires sellers to report if transactions via these third-party networks whole greater than $600 in a single 12 months. Consists of provisions. A threshold of over 200 transactions over $20,000 per 12 months.

The availability was supposed to enter impact on January 1, 2023, however the IRS delayed implementation, saying calendar 12 months 2022 can be the “transition interval” for the change.

“The extra time will assist scale back confusion throughout the upcoming 2023 tax submitting season and supply extra time for taxpayers to organize and perceive the brand new reporting necessities,” mentioned Performing IRS Commissioner. mentioned Doug O’Donnell of

The discharge says implementation of the brand new threshold will likely be delayed for transactions occurring after 2022. The delay is meant to facilitate an “orderly transition” for compliance from third-party organizations and people, the company mentioned.

The IRS mentioned the legislation doesn’t have an effect on non-public transactions, the place people share the price of rides, meals, presents and family bills.

The company acknowledges that insurance policies must be fastidiously managed to make sure that 1099-Ks, the types used to report industrial transactions, are solely despatched to taxpayers who ought to obtain them. mentioned. Further particulars on delays and knowledge to assist taxpayers will likely be accessible within the close to future, it mentioned.

Author: ZeroToHero

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