IRS DELAYS REPORTING RULES FOR USERS OF VENMO, CASH APP AND OTHER PAYMENT APPS

Users of Venmo, Cash App and other payment apps will get a tax reprieve this year. The IRS announced Tuesday it will delay implementing new reporting requirements that were to take effect for the coming tax filing season.

Originally, app users who made $600 or more selling goods and services would have been required to report those transactions to the IRS, a new threshold required by the American Rescue Plan passed in March 2021.

Instead, payment apps and online marketplaces will send out separate tax forms — called 1099K documents — for taxpayers who receive over $20,000 and make over 200 transactions selling goods or services.

For 2024, the basic reporting threshold will be increased from $600 to $5,000, the IRS said.

IRS officials say one reason for the delay is taxpayer confusion over what sorts of transaction are reportable.