Venmo, PayPal and Cash App will now have to report transactions totaling more than $600 to the IRS as Biden plans to ramp up financial enforcement //

The new reporting requirement will ensure that small businesses that receive payments through those apps are paying their fair share in taxes on them
Beginning Jan. 1, 2022, third-party payment processors were required to report such transactions
The changes will be included during the 2022 tax season
The payment apps were previously required to send users 1099-K forms if their gross income exceeded $20,000 or had more than 200 transactions per year //

The new rule is only for goods and services transactions, not personal, such as paying a roommate for rent or reimbursing a friend. It also excludes anyone selling a personal item at a loss, such as a couch bought for $700 and sold for $650. //

The new tax rule is separate from a proposed IRS reporting requirement that originally would have handed over transaction data on accounts with more than $600 aggregate inflow and outflow. That proposal, originally part of President Biden's Build Back Better plan, was raised to a $10,000 threshold after much pushback, and has not yet been acted on by Congress.