Cash App Tax: IRS Delays New Reporting Requirements

The Internal Revenue Service (IRS) plans to delay the start of new rules relating to the cash app tax and other third-party networks’ transaction reporting thresholds.

Cash App is a third-party payment system similar to Paypal that has experienced rapid growth over the last five years.

During the past few years, Cash App has made tremendous growth, and its customer base has gone from 7 million to 49 million in less than five years.

In a release, the IRS said it had delayed lowering the tax reporting threshold to $600 in light of concerns it had received about the timeline.

Concerns about the timeline had also been expressed to the Treasury Department.

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It had a provision under which sellers could report if their transactions exceeded $600 in a year over third-party networks.

This is considered a significant decrease in the limit, as the previous limit was over 200 transactions worth more than $20,000 per year.

The new limit was to take effect on January 1, 2023.

However, the IRS announced a delay in implementation, stating that the calendar year 2022 would be considered a “transition period” for the new rule’s change.What ATMs Are Free For Cash Apps| 89 ATMs That Support Cash Apps!

 According to IRS Commissioner Doug O’Donnell, the time extension will allow for easier 2023 tax filing because taxpayers will have more time to prepare and learn about the new reporting requirements.

 The agency also stated that the time extension will assist third-party organizations and concerned individuals in complying with the new rule and transitioning smoothly to the new reporting requirements.

The IRS further went on to say that the individual will not be affected in personal transactions regarding sharing the cost of a meal, a ride, a gift, or a household bill.

 It said that the agency knows it needs to carefully manage the policy to make sure that 1099-K forms, which are used to report business transactions, are sent only to taxpayers who should get them. 10 Best Cash App Games That Pay Real Money in 2023

It said additional details on the delay and information to help taxpayers would be available in the near future.