How the New IRS Rules Could Affect Venmo, Zelle, and CashApp Users
“The Biden administration is also changing IRS standards to begin tracking all financial transactions Americans make over $600, including on CashApp, Venmo and PayPal,” Scott said. “This is an outrageous violation of American privacy. This is something we see in communist China.
Democrats have also been on the defensive of the law, and some, including Sen. Maggie Hasan of New Hampshire, have called for it to be changed. His legislation, the Cut Red Tape for Online Sales Act, would change the law so that online sellers would not receive tax forms showing their sales until those transactions exceeded $5,000. She warned that “unnecessary confusion caused by unnecessary tax forms risks burdening Granite Staters with undue taxes”.
Lobbyists representing online shopping and payment platforms have engaged in a last-minute pressure campaign to persuade lawmakers to include such changes in a year-end spending package lawmakers expect to see. adopt this week. But it is unclear whether there is enough political support to reverse the measure.
Arshi Siddiqui, a partner at law firm Akin Gump, which represents a coalition of businesses trying to change new tax requirements, said she expects up to 50 million taxpayers to get new tax returns. for the first time as a result of the US bailout measure.
“If Congress doesn’t act, we’ll see a tsunami of 1099 hitting people who will be confused,” Siddiqui said, adding that she thinks it’s possible the Treasury Department could potentially change or delay the measure. on its own.
The Treasury Department declined to comment on the situation.
Senator Ron Wyden of Oregon, Democratic chair of the Senate Finance Committee, spoke to Treasury Secretary Janet L. Yellen this week and told her that the IRS needs to improve its communication with taxpayers about new requirements and explain more clearly what types of transactions will be taxable.
“There has been considerable confusion about this provision, and the IRS needs to provide greater clarity to taxpayers as soon as possible,” Mr. Wyden said in a statement in which he recounted the conversation with Ms. Yellen.
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