Proposal to Raise Venmo & PayPal Reporting Limit to $10K
Two senators have proposed an amendment to the $1.7 billion funding package, to raise the $600 reporting requirement for third-party payment networks such as Venmo and PayPal, to $10,000.
The lower threshold was part of the American Rescue Plan Act in early 2021. Now, the Internal Revenue Service (IRS) requires reporting of payment transactions via payment apps such as Venmo, PayPal, Stripe and Square, for goods and services sold that meet or exceed $600 in a calendar year.
The previous threshold for reporting these transactions was significantly higher before the American Rescue Plan. You would need to have more than $20,000 in payments and 200 or more transactions within the calendar year.
Business groups have been urging the Treasury Department to delay the new requirements to avoid an administrative crisis at the I.R.S., which is already overwhelmed.
The American Institute of CPAs on Friday also shared “deep concerns” about the $600 tax reporting threshold in a letter to the Senate Finance Committee and the House Ways and Means Committee.
The news about the amendment was first revealed in an interview with CNBC.
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Raising it to 10k is a great idea. This was a big overreach by the Biden administration. And no Derek not all sellers should pay income tax. It depends on the size of their business and revenue being generated. You sound like a Biden shill.
Sellers using Paypal should pay income taxes.