IRS Delays Tax Forms for Payment Apps: What You Need to Know
If you’ve been using payment apps like Venmo, PayPal, or Cash App to manage your finances, the IRS has news that might bring a sigh of relief. The agency recently announced that it is postponing the implementation of a 2021 law, for the second consecutive year, which mandates payment platforms to send tax forms (1099-Ks) to individuals receiving more than $600 in a tax year.
This decision comes as a response to concerns raised by taxpayers, tax professionals, and payment processors, aiming to minimize confusion among taxpayers. Without this delay, a staggering 44 million 1099-K forms would have flooded taxpayers’ inboxes for the current tax year, even for those who might not owe taxes on the payments.
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