Boca Raton, Fla. — Financial experts and the IRS are alerting business owners to new tax rules this spring that will change how they report transactions received through apps like Venmo, Zelle and PayPal.
Marshall Sklar, owner of Mizner Storall, said, “Over the past few years, more and more people want electronic payments. Do you accept electronic payments? WPTV.
At one of its other vaults, Sklar told WPTV that it has started accepting payments from tenants through apps like Venmo and Zelle.
“I like it because it’s fast,” Sklar said. “We can literally start sending money instantly. Through Venmo, she will have the money in her account within three days and Zelle will be sent instantly.”
Back in January, new provisions in the American Rescue Plan Act went into effect that require anyone who earns $600 or more in goods and services through one of these apps to report it to the IRS.
“Any income from goods and services above $600 is sent to you or filed with the IRS,” said Noah Rubin, managing director of investments at Wells Fargo.
Previously, the reporting requirement only applied to payments over $20,000, Rubin said.
“So what they’re really doing is pulling it down to a lower level to collect more revenue,” Rubin said. “So what’s really happening here is that the IRS is catching up with new technology.”
This change applies only to sellers of goods and services and does not apply to personal transactions.
“We highlight which transfers are above or below a certain amount, and our accountant and I review each transfer to determine which are for business and which are personal,” Sklar said. I was.
It’s a little extra work, but Sklar told WPTV that these apps have changed the way he does things, so it’s worth it.
“The 3% transaction fee I’m saving on credit card processing will pay for the hours it takes to figure out what was what,” Sklar said.