If you haven’t heard, the IRS recently announced it won’t require platforms such as Venmo and PayPal to issue a tax form – 1099-K – when someone used them to collect more than $600 in 2022.<\/p>\n
This requirement was delayed until at least 2023.<\/p>\n
(The current requirement – if you collected $20,000 or had 200 plus transactions – still remains.)<\/p>\n
If you’re unfamiliar with this, you can check out the link in the comments \ud83d\udc47.<\/p>\n
The overwhelming reaction was one of relief.<\/p>\n
But I think something has to be clarified.<\/p>\n
Just because the IRS doesn’t “know” about your Venmo\/PayPal activity, doesn’t mean your reporting requirements – as an IRS taxpayer – changed at all.<\/p>\n
You still need to report the activity as income, assuming that’s what it was.<\/p>\n
If your business is unfortunately audited and it turns out you only reported your non-Venmo\/PayPal activity, you will be an easy target.<\/p>\n
There may be a clear paper trail – your bank statements will show the Venmo\/PayPal activity\/deposits, and you may have a hard time explaining that.<\/p>\n
Look, I understand the feeling of comfort one may feel knowing the IRS has one less way to track their activity, but that’s not an excuse for doing something silly.<\/p>\n
Be smart.<\/p>\n","protected":false},"excerpt":{"rendered":"
If you haven’t heard, the IRS recently announced it won’t require platforms such as Venmo and PayPal to issue a tax form – 1099-K – when someone used them to collect more than $600 in 2022. This requirement was delayed until at least 2023. (The current requirement – if you collected $20,000 or had 200 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n