The US Internal Revenue Service (IRS) is introducing new rules to curb tax evasion through payment apps such as Venmo and PayPal. Starting January 2025, these platforms will be required to report transactions exceeding $600 to the IRS, helping to prevent individuals from dodging taxes.
The changes aim to increase transparency and make it more difficult for taxpayers to hide income or avoid paying their fair share of taxes. The new rules apply to both individual and business users of payment apps.
Taxpayers who fail to comply with these regulations may face penalties and fines. However, the IRS hopes that by making this information available to tax authorities, it can help identify and prevent tax evasion schemes.
The move is part of a broader effort to combat tax evasion and ensure compliance with tax laws.
Source: https://www.yahoo.com/news/irs-changing-rules-payment-apps-234832312.html