NEVADA – The IRS is changing the monetary threshold for payment processors like Venmo, PayPal, and Zelle to report transactions to the IRS.

Beginning in 2024, payment processors will be required to report transactions of $600 or more to the IRS. This is a significant decrease from the current threshold of $20,000 or more.

The IRS says the change is being made to “bring the reporting threshold in line with the requirements for other types of income.” The IRS also says the change will help to ensure that all taxpayers are paying their fair share of taxes.

For businesses, the change means that they will need to keep better track of their Venmo, PayPal, and Zelle transactions. Businesses will also need to report these transactions to the IRS on their tax returns.

The IRS is encouraging businesses to start preparing for the new reporting requirements now. Businesses can get more information on the IRS website.

Here are some key takeaways

• The IRS is changing the monetary threshold for payment processors to report transactions to the IRS.
• Beginning in 2024, payment processors will be required to report transactions of $600 or more to the IRS.
• The change is being made to “bring the reporting threshold in line with the requirements for other types of income.”
• Businesses will need to keep better track of their Venmo, PayPal, and Zelle transactions.
• Businesses will also need to report these transactions to the IRS on their tax returns.

Here are some additional tips for businesses:

• Start preparing for the new reporting requirements now.
• Get a copy of your Venmo, PayPal, and Zelle transaction history.
• Keep your transaction records for your tax records.
• Consult with a tax advisor if you have any questions.

Credits: KOLOTV