IRS warns of $600 payments through Venmo, cash etc will get reported to them.

I suspect I won’t get a letter with $601 of Venmo payments. I will if I have $50,000 of accumulated Venmo payments.

 

maybe but the concept is camels nose. As I mentioned before the first income tax was 3%. The thresholds will change as will the reporting.

 

The same way Kavanaugh did?

 

Why do you suppose the private sector is leading that charge if true? The government didnt develop PayPal, CashApp, Venmo, Credit Cards, crypto/NFTs etc.

 

It seems like you are arguing that it will be harder to lie (although they could lie now or with the new bill, the issue is how able and how likely they are to get away with such a lie) and that will generate additional revenue. Is that a bad thing because the person lying isn't rich?

 

I’m missing the link

 

Kavanaugh had a bunch of sketchy financial stuff going on, but waved it all away with the explanation that the debt (a couple hundred thousand dollars) was from him buying tickets for friends, and then the debt disappeared because his friends all paid him back. Never provided any documentation for any of it.

 

I agree the reporting requirements aren't changing. You can lie before or now and it only affects you if you get audited. My larger point was pointing out the steady mantra of The 1% needs to pay their fair share during campaigns and elections, Then you get this dandy piece of legislation which doesn’t effect the 1% at all… at the expense of the little guy

 

I have a real issue with this. I use Venmo and Paypal to send my brother money every month to cover mom's medical costs that are more than her social security pays out. So it's another item I'll have to spend time documenting so the feds don't show up on her doorstep with assault rifles.

 

Not sure if the new requirement would apply to you. This is from the original linked article.

 

Someone please correct me if inaccurate but my understanding was all transactions over $600 would be reported and if you are on the receiving end you would have to be prepared to document why. Sold a couch. Brother reimbursed me for plane ticket etc

 

This is the way I understand it to be also. I agree if you are not doing anything wrong it shouldn't be a big deal, but it will be. The IRS doesn't work like the courts, innocent until proven guilty, you have to show documentation and prove your innocence so that means keeping detailed records of every transaction. If you don't think this is an overstep, you live in fantasyland. Tax cheats are going to be tax cheats. You want to fix the tax problem, just up thread someone noted income of $200,000 and after deductions his income tax bill was $6,000. That is an effective rate of 3%. I'm not implying he did anything wrong but that is where this system fails all of us

 

Seems to be somewhat contradictory on one hand the payments apps like Venmo may have to issue forms 1099k on all payments $600 or over while on the other hand personal transfers not for the payment of goods or services aren't taxable or in other words using the apps strictly to transfer money and not for the sale of goods and services doesn't create a taxable event.
1099-K Myths: Venmo & PayPal Payments - The TurboTax Blog

Is the IRS taxing PayPal, Venmo, Zelle, or Cash App transactions? Here’s what you need to know

 

In Venmo, there is a specific toggle for "Turn on for purchases." It looks like this is Venmo's trigger on how to count payments, this appears to be the trigger for whether or not something will count towards the $600 limit:

https://help.venmo.com/hc/en-us/articles/4407389460499-2022-Tax-FAQ

New tax reporting requirements for payment apps could affect you - DunlapSLK

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