Venmo 1099s - A New Audit Trigger? - YES!
1099-k Reporting Requirements for Venmo Transactions and Other Mobile Apps You may have heard or read about the IRS' recent proclamation about reporting receipts from Venmo transactions and other mobile payment apps. The IRS recently announced that calendar year 2022 will be treated as a transition year for the reduced reporting threshold of more then $600. For the calendar year 2022, third party settlement organization who issue Forms 1099-k are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions. So, while the reporting requirement may have been delayed, those of us who use Venmo as a payment mechanism need to continue to monitor this situation and implement compliant procedures for calendar year 2023. The IRS using matching programs to match-up amounts contained in tax returns with actual amounts reported by third parties. A matching error notice is usually not that a big a deal, its a matter...