The IRS is delaying implementation of a new rule that requires companies like PayPal, Venmo, and CashApp to report user transactions that eclipse a $600 threshold.
That unpopular new rule is part of the 2021 American Rescue Plan. It will require companies known as third-party settlement organizations (TPSOs) to send users who transact $600 or more in a year a Form 1099-K.
The rule was supposed to go into effect this year. However, in an update announced on Dec. 23, the IRS says that rule will not go into effect for the 2022 tax year. It was only a month ago that the IRS reminded taxpayers and businesses of the new $600 threshold rule.
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