IRS DELAYS REPORTING RULES FOR USERS OF VENMO, CASH APP AND OTHER PAYMENT APPS

Users of Venmo, Cash App and other payment apps will get a tax reprieve this year. The IRS announced Tuesday it will delay implementing new reporting requirements that were to take effect for the coming tax filing season.

- 

Originally, app users who made $600 or more selling goods and services would have been required to report those transactions to the IRS, a new threshold required by the American Rescue Plan passed in March 2021.

Instead, payment apps and online marketplaces will send out separate tax forms — called 1099K documents — for taxpayers who receive over $20,000 and make over 200 transactions selling goods or services.

For 2024, the basic reporting threshold will be increased from $600 to $5,000, the IRS said.

IRS officials say one reason for the delay is taxpayer confusion over what sorts of transaction are reportable.