Re:Venmo, PayPal and Zelle must report $600 in transactions ...
by pests on Tuesday January 18, 2022 @10:46PM
(#29989724)
It's not up to Venmo to report. They are just providing extra information to the IRS to cross check.
Even if you mark it as such in-app; as a business you still have a legal duty to correctly report the income your business made.
Not doing so is already illegal. This just helps the IRS catch this type of fruad easier.
There's no extra taxes or anything - the $600 or more is taxed when reported correctly (as it was before this change, and how amounts under $600 are taxed as well - business income).
Even if you mark it as such in-app; as a business you still have a legal duty to correctly report the income your business made.
Not doing so is already illegal. This just helps the IRS catch this type of fruad easier.
There's no extra taxes or anything - the $600 or more is taxed when reported correctly (as it was before this change, and how amounts under $600 are taxed as well - business income).