New rule: Transactions of more than $600 in cash apps must be reported to IRS
January 3, 2022
File / eExtra News
A new rule for users of cash apps who receive more than $600 indicates the transactions must be reported to the IRS. The rule started on January 1. Previously, business transactions only had to be reported if they exceeded $20,000.
Keep in mind, however, if you use the cash apps for personal transactions, this rule does not apply to you. If, however, you are affected, you will receive a 1099-K form.
According to reports, these changes were prompted by language in the American Rescue Plan.