Venmo users unhappy after learning about new reporting requirement

Source: Fox News

“Venmo users said they’re changing their minds about the app over a new legal provision that requires the company to report commercial transactions totaling over $600 per year to the IRS. ‘Honestly, I’m using Venmo because there’s no taxes,’ and if it ‘starts to have taxes, I’m not using it anymore,’ one Venmo user told Fox News. Effective Jan. 1, third-party payment processors are required to report a user’s business transactions to the IRS if they exceed $600 for the year. Previously, payment apps like PayPal, Zelle and Cash App were required to send users Form 1099-K only if their gross income exceeded $20,000 and if they had 200 separate transactions within a calendar year.” (01/12/22)