2022: Companies to Report Payments of $600 or More

~3 min read | Published on 2022-01-08, tagged Cryptocurrency-RegulationGeneral-News using 553 words.

Payment services such as CashApp, Venmo, and Zelle are now required to report transactions totaling $600 or more to the Internal Revenue Service.
As of January 1, 2022, payment services like Cash App, Venmo, and Zelle, among others, are required to report transactions that total $600 or more in one year to the Internal Revenue Service.
Forbes tells us how reasonable this is:
The IRS is cracking down on payments received through apps, such as Cash App, Zelle, or Paypal to ensure those using the third-party payment networks are paying their fair share of taxes.

It seems like common sense that the people failing to pay their “fair share of taxes” are the people earning $601 through Cash App.
Previously, the IRS required third-party payment networks to report transactions when the gross payments exceeded $20,000 and had more than 200 transactions per year.
Related: Yellen Defends Proposed Bank Reporting Requirements
The requirement is not limited to Cash App, Zelle, or Venmo; all payment networks, including bank accounts, have the same reporting requirements.
[img=]Form 1099-K[/img]

PayPal, the owner of Venmo, published a document with answers to potential questions from their customers. The company broke down the changes as follows:

  • 1099-K Threshold Change:[/em]

  • This new Threshold Change is currently only for payments received for goods and services transactions, so this doesn’t include things like paying your family or friends back using PayPal or Venmo for dinner, gifts, shared trips, etc.
  • This change was introduced in the American Rescue Plan Act of 2021, which amended some sections of the Internal Revenue Code to require Third-Party Settlement Organizations (TPSOs), like PayPal and Venmo, to report goods and services transactions made by customers with $600 or more in annual gross sales on 1099-K forms. Currently, a 1099-K is only required when a user receives more than $20,000 in goods and services transactions and more than 200 goods and services transactions in a calendar year.

  • [i]In-flow and Out-flow Reporting Changes[/em]

  • The In-flow and Out-flow Reporting Changes are currently only a legislative proposal, which could potentially be considered by Congress this year. The proposed change would ultimately require all banks and payment service providers, including PayPal and Venmo, to report total inflows and outflows for accounts with at least $10,000 of total deposits and/or withdrawals to the IRS. This is intended to increase the visibility the IRS has into money coming in and out of customer accounts.
  • At this stage, unlike the 1099-K Threshold Change, this is just a proposal and the details are still up for debate. As the situation changes, we’ll be sure to keep this updated as we learn more.

  • If a user transacted more than $600 in one year, the financial service is supposed to send them a Form 1099-K which PayPal described as “an IRS informational tax form used to report payments received by a business or individual for the sale of goods and services that were paid via a third-party network.”
    There presumably will not be any changes to the lives of US citizens who file accurate tax information with the IRS. However, considering the apparent need to add almost 90,000 IRS employees, it seems as if the government is anticipating [i]something…

    PayPal warned:
    For the 2022 tax year, you should consider the amounts shown on your Form 1099-K when calculating gross receipts for your income tax return. The IRS will be able to cross-reference both our report and yours.

    Should have used Monero?

    Comments (21)


    @DNL I mean it doesn't seem like a better option exists for those without bank accounts or largely any connection to the centralized financial system. Cash. CASH. CASH. You know like 95\% of criminal enterprise on the planet?


    Okay, if you are standing on a street corner selling dime bags of crack, I agree. But if you're buying or selling drugs online (which is apparently what 90\% of my readers do and all they care about), are you proposing mailing cash back and forth? I can't help but be skeptical about anyone proposing such a thing.


    ^ oink oink hire a private contractor pig and find out


    ^ u mad bro? snitch


    ^ ok Officer whats the matter that software engineering degree didn't teach u critical thinking? oh noooooos Crime doesn't pay. Whatcha all gonna do pedo cyber criminals, how u gonna cash out now?!?!?! OH NOOOOOOOOOS


    i thought the academy taught you the basics of criminology assuming you passed that criminal justice undergrad


    ^ @Codex The great Codex legit graces us all with wisdom and speaks truth.


    Exit scam or bow out gracefully. Some will live in denial. Others will learn how the industrial military complex works. Some will live a quite suburban life. Some will be buried in a shallow grave, while others will disappear into the Brazilian sunset. I will be in Belize, thank you very much. All good things...


    @DNL in the comments loose lips sink ships jesus bro STOP taking LE bait. JFC they are always building a case on all of you. they take the low hanging street niggas because they are the easiest to get and no one cares so they get a public defender but the real prize is you san fran bois like DNL

    No Politics2022-01-09

    Lot of bullshit here, even modz getting wrapped up in this, sad day for small businesses, negligible to big business… come buy our tax free shit instead perhaps??


    anyone know what happend to monopoly lmao? was just looking for an article haha


    Monopoly vanished. Defacto exit scam even if not planned that way is the general consensus I think. Lot of speculation. Will publish something soon.


    Well I feel bad for the people connected to my future pros :'( A lil worse than being banned from the service after 2k cashout

    Jacob Andersen2022-01-14

    > 90\% of the comments are posted by feds running some COINTELPRO-style op a / k / a routine legal police work?

    Jason Gale2022-01-21

    This is the exact reason why we need to fight back against the government! I am looking for people who are willing to fight along side me, my plan is to attack the IRS head quarters. I need a weapons supplier, if you or anyone you know is willing to participate or provide me with additional resources please email me at [redacted this fedposter's email address].


    Taxes end up benefiting everyone. This how the government is able to govern. Without his, you'd have no rights, nothing you are "entitled to". Taxes are not on the People, but for the People. Sure, there are loopholes and pieces of shit and corruption, but it would be much worse without a public budget. So don't fuck the gov, fuck you for trying to steal from everyone.


    y'all love movin those goal posts the system is working as designed you are poor you are on the bottom you cannot rise to the top accept this reality be happy be healthy Be wise. Be safe. Be aware.


    oh you forgot... MONERO!!! Monero needs your help: OSPEAD - Fortifying Monero Against Statistical Attack (ccs.getmonero.org) Needs your help... taking your dirty dirty filthy FIAT


    I mean it doesn't seem like a better option exists for those without bank accounts or largely any connection to the centralized financial system. I certainly don't treat cryptocurrency as an investment and wouldn't even if I had the money to be someone who invested. These criticisms seem valid but monero seems like a better option than trading some other fake barter token.


    @Monoply... i mean DNL, lol oh shit bruh u really have no idea how fucked you are


    @atetheonion If you say so bud