A major IRS rule change is here, and it could dramatically impact your bottom line if you're not prepared. Starting in 2024, the threshold for reporting payments via platforms like Venmo, PayPal, and Cash App is dropping to just $5,000—and it will shrink even further in the years to come.
Here's what you need to know:
- Old Rule: $20,000 or 200 transactions.
- New Rule: $5,000 in 2024, $2,500 in 2025, and $600 in 2026.
- Who’s Affected? Online sellers, freelancers, gig workers, and small business owners using payment apps for goods and services.
This isn’t just about compliance—it’s about saving your business thousands by avoiding penalties and setting up proper bookkeeping systems.
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