IRS Delays Implementation of New Reporting Rules for Payment Apps like Venmo and Cash App

The IRS has announced a delay in implementing new reporting requirements for users of payment apps such as Venmo and Cash App. Originally, users who made $600 or more selling goods and services would have had to report those transactions to the IRS, but now separate tax forms will be sent for taxpayers who receive over $20,000 and make over 200 transactions. The basic reporting threshold will be increased to $5,000 in 2024. The delay is due to taxpayer confusion and the need for additional time to effectively implement the new requirements. Lawmakers from both parties have celebrated the delay and called for a reevaluation of the provision in the American Rescue Plan.