From Fox29.com…
The new year has brought in a new tax rule that will see the Internal Revenue Service (IRS) gain intel on the income small businesses made through transactions on popular payment apps.
Third-party payment processors like Venmo, PayPal and Cash App are now required to report a user’s business transaction to the IRS if they exceed $600 for the year.
According to FOX Business, the new rule only applies to payments received for goods and services. Many small businesses use these apps to receive payments from patrons.
This means money exchanged as gifts or favors isn’t taxable, and property sold at a loss is also excluded.
