IRS delaying $600 payment reporting rule for PayPal, Venmo and more — again
CBSN
The IRS on Tuesday said it is again delaying the implementation of a 2021 law that requires payment platforms such as Venmo, Paypal or Cash App to send tax forms called 1099-Ks to anyone who received more than $600 in the current tax year.
It's the second consecutive year the IRS has delayed enacting the new regulation, after the tax agency last year pushed off the new law until 2023. On Tuesday, the IRS said it will push the regulation back another year "to reduce taxpayer confusion" after hearing from taxpayers, tax professionals and payment processors.
Without that delay, an estimated 44 million 1099-K forms would have been sent to millions of taxpayers for the current tax year, even though they may not have owed taxes on the payments and wouldn't have been expecting such a form, the IRS said.
