IRS announces delay of $600 tax reporting rule for Venmo and PayPal payments
Zachary Halaschak
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The IRS announced Tuesday it is delaying a controversial new requirement that will require people to report income in excess of $600 paid through apps such as Venmo.
The IRS said in a news release that the delay followed an outpouring of feedback from taxpayers and tax professionals. The agency said that as a result of the delay, taxpayers won’t have to file such a report unless they receive over $20,000 and had more than 200 transactions this year.
“As the IRS continues to work to implement the new law, the agency will treat 2023 as an additional transition year,” the IRS said in a statement. “This will reduce the potential confusion caused by the distribution of an estimated 44 million Forms 1099-K sent to many taxpayers who wouldn’t expect one and may not have a tax obligation.”
This story is breaking and will be updated.