Who is affected: Anyone that uses online payment methods such as PayPal, Venmo, etc.
There has been a great deal of information published regarding a proposed regulation by Congress that would require third party payment services such as PayPal, Venmo, Zelle and others to report to the Fed amounts processed that are 600.00 or more annually.
The implementation of the new 600.00 rule has been postponed until 2023 so that those who use the services for personal transfers, like sending money to a friend of relative, are not burdened with unnecessary tax reporting requirements. The change was never intended to require the reporting of personal, non-business payments to be included as income. The current regulation will remain which is the reporting of amounts that exceed $20,000 or 200 payments.