Payment apps to report payments of $600 and higher to IRS

November 18, 2021

Small businesses that rely on Venmo, PayPal or other third-party payment app may have a rude awakening next year.

Under a provision in the American Rescue Plan Act (ARPA), providers must report transactions totaling $600 or more to the IRS starting Jan. 1, 2022.

Previously, the IRS only required payment apps to report payments when an account had 200 or more business transactions during the year totaling at least $20,000. See how this will work.

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