How New IRS Rules Could Affect Venmo, Zelle and CashApp Users

“The Biden administration is also changing IRS standards to begin tracking every financial transaction Americans make in excess of $600, including on CashApp, Venmo and PayPal,” Scott said. “It is a blatant violation of American privacy. That’s what we see in Communist China.”

Democrats have also defended the law, and some, including Senator Maggie Hasan of New Hampshire, have called for it to be amended. her law, the Cut the Red Ribbon for the Online Sales Act, will change the law so that online sellers don’t receive tax forms showing their sales until those transactions reach $5,000. She warned that “Unnecessary confusion caused by unnecessary tax forms risks burdening the Granite States with excessive taxes.”

Lobbyists representing online payment and sales platforms have engaged in a last-minute pressure campaign to persuade lawmakers to include those changes in a year-end spending package. which lawmakers are expected to pass this week. But it is not clear whether there will be enough political support to rescind the measure.

Arshi Siddiqui, a partner at law firm Akin Gump who represents a coalition of businesses trying to change the new tax requirements, says she expects that as many as 50 million taxpayers will received new tax reports for the first time due to the measure in the US Rescue Plan.

“If Congress does not act, we will see a tsunami of 1099 hit with people who will be confused,” Ms. Siddiqui said, adding that she thought the Treasury could change or delay the above measure. its own.

The Treasury Department declined to comment on the situation.

Senator Ron Wyden of Oregon, the Democratic chairman of the Senate Finance Committee, spoke with Treasury Secretary Janet L. Yellen this week and told her the IRS must improve its communication with people. pay taxes on the new requirements and more clearly explain what types of transactions will be made. taxable.

“There has been significant confusion about this provision and the IRS needs to provide more clarity to taxpayers as soon as possible,” Mr. Wyden said in a statement, in which he recounted his conversation with her. Yellen.


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