- Payment apps are now required to report business transactions that exceed $600 annually.
- The new tax rule underscores one of the biggest advantages that governments see with digital payments: traceability.
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The news: Effective January 1, 2022, payment apps like PayPal, Venmo, and
are required to report users’ business payments that exceed $600 in a calendar year to the Internal Revenue Service (IRS), per NBC News.
Providers need to give business owners a 1099-K tax form that breaks down commercial income received through the app if it meets the $600 threshold.
1099-K forms were previously only required for merchants with more than 200 transactions in a year exceeding $20,000 in total value. The updated