(WAYNE DUPREE) – Beginning on January 1, third-party payment applications that receive payments for goods and services totaling $600 or more must record such payments to the Internal Revenue Service (IRS).
In addition to PayPal, Venmo, Cash App, Zelle, Google Pay and other popular payment applications, the new law will impact all other major payment apps as well.
When the American Rescue Plan was enacted by the Democrats without a single Republican vote in March 2021, the modified reporting criteria was included. Certain transactions involving third-party payment platforms must be reported on 1099-K forms by the third-party payment platforms.
