Source: Town Hall
by Francisco Ferrisi
“If you use Venmo, PayPal, or CashApp, you could be in for a rude awakening next tax season. Due to Kamala Harris’s tie-breaking vote in 2021, the IRS will soon force users of peer-to-peer online payment apps to deal with additional paperwork – whether they owe taxes on the payments or not. … A 1099-K was once an obscure IRS form intended to track business payments done with peer-to-peer payment platforms such as Venmo. Now it threatens to overwhelm everyday Americans with IRS paperwork and confusion which will trigger the payment of taxes even when there is no tax owed. Prior to the American Rescue Plan Act of 2021, you’d only receive a 1099-K form if you exceeded 200 transactions and received more than $20,000 in a year from a given payer. This bill eliminated the transaction limit and slashed the threshold to $600.” (09/28/24)
https://townhall.com/columnists/francisco-ferrisi/2024/09/28/kamalas-venmo-tax-trap-n2645377