New IRS Rules For Cash Payment Apps
Let’s talk about a new tax coming in 2022. It’s not exactly a new tax but it's a new way that the IRS are going to keep tabs on your finances even down to your garage sales. I'll explain that in a second, so on January 1, 2022, new laws are being put into place that 1099 reporting will be implemented and it will be mandatory for payment platforms like Vimeo, cash app, and PayPal. What it means is that there will be a 1099 issued for anyone who receives $600 or more in transactions throughout the entire year. Currently, to give you an idea how different this is, a lot of people believe it’s normal but it's not normal for these payment apps. This is for anybody selling things or receiving payment on payment platforms like PayPal and that's $600 throughout the year total. Currently, to give an idea how big of a deal this is or how big of a change from the current rule it is, those payment platforms do not have to issue a 1099 unless at least $20,000 of transactions have