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IRS Delays Implementation of New Cash App Tax Reporting Rule: What You Need to Know
In 2022, the Internal Revenue Service (IRS) made a bold move to tighten tax reporting requirements for third-party payment processors like Venmo, PayPal, Cash App, and Zelle. A proposed law aimed to require these platforms to report all transactions exceeding $600 annually via IRS Form 1099-K. The change sparked widespread concern among freelancers, small business owners, and casual users, who argued that such a low threshold could lead to unnecessary confusion and administrative burdens.