For merchants who receive $600 or more payments in total for goods and services through a third-party payment network, such as Venmo, Cash App or Zelle, these payments will now be reported to the Internal Revenue Service (IRS) starting Jan. 1, 2022.
According to Forbes, the new rule results from the American Rescue Plan signed into law and will mainly impact business owners using third-party payment network providers.
The IRS is cracking down on payments received through apps to ensure those using the third-party payment networks are paying their fair share of taxes.
Please select this link to read the complete blog post from OSAP Member Infintech.