Venmo, Zelle®, and PayPal are familiar online payment platforms. They are peer-to-peer payment apps that allow you to transfer money. Some people use them to pay family and friends. Others use them to make business transactions.
What are these payment apps, and when you use them, can your transactions be taxed?
Increased Tax Reporting on Payment App Transactions
Taxation on business transacted through payment apps is nothing new. When you send money through certain peer-to-peer apps, specified amounts of business transactions are subject to taxation on the part of the recipient.
However, the Internal Revenue Service (IRS) has recently changed the amounts for which they will require a 1099-K form. A 1099-K is the IRS form used to report payments for goods and services through third-party networks….