Recently, the Treasury Department announced a new requirement for taxpayers to report payments of at least $600 received through third-party payment apps, like Venmo, PayPal and Cash App. This new rule applies only to payments received for goods and services, and excludes payments sent as gifts, reimbursements, or selling personal items at a loss.
The National Association of Tax Professionals (NATP) has urged the Treasury Department to delay implementing the rule and make some modifications. They have expressed concern that the new rule could cause confusion among taxpayers and create an additional burden on the already overwhelmed IRS. The NATP has suggested several changes to the new rule, such as separating business transactions from personal accounts and more public outreach to educate taxpayers on how to properly fill out the form.
At this time, the Treasury Department has yet to respond to the NATP's request. It remains to be seen whether the Treasury Department will delay implementing the rule and make any modifications, or if they will stick to the original plan. Until a response is issued, taxpayers should familiarize themselves with the new rule to ensure they are prepared to comply.