The agency has decided to use the next tax year as a transition period to develop information to help taxpayers comply with the new requirements. The IRS cited taxpayer confusion and a lack of guidance available to the public as reasons for the delay. However, the IRS announced late in 2022 that it would delay the new lower reporting requirements until the 2024 tax filing season. Under the law, the apps were supposed to send users a Form 1099-K- “Payment Card and Third Party Network Transactions”-for transactions of as little as $600 for payment of goods and services during the 2022 tax year. The current law requires the companies to report payments if they’re in the tens of thousands of dollars, and if numerous transactions are completed during the year.Ī 2021 law called for revising the tax reporting requirements for the apps, which are formally known as third-party settlement organizations. Payment apps such as Cash App and Venmo have been given extra time to implement a change that will require them to report more consumer payment information to the IRS.
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