Republicans are crying foul after the IRS reminded Americans they will have to report their $600 transactions on Venmo and PayPal to the IRS.
In a provision that the Biden administration claimed was to crack down on wealthy tax cheats, the American Rescue Plan required taxpayers add to their 1099-K 'gross payments for goods or services that exceed $600.'
The IRS posted an explainer Tuesday reminding taxpayers the reporting threshold for 1099-K forms would be lowered from $20,000 to $600. The number of transactions that trigger receiving a form will also be lowered from 200 to 1.
The change applies to payments on third-party processors, such as Venmo or Pay Pal, and is for transactions such as such as part-time work, side jobs or selling goods.