𝐇𝐨𝐰 𝐰𝐢𝐥𝐥 𝐭𝐡𝐞 𝐧𝐞𝐰 2022 𝐭𝐚𝐱 𝐫𝐮𝐥𝐞 𝐟𝐨𝐫 𝐜𝐚𝐬𝐡 𝐚𝐩𝐩 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐚𝐟𝐟𝐞𝐜𝐭 𝐲𝐨𝐮𝐫 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬?

𝐇𝐨𝐰 𝐰𝐢𝐥𝐥 𝐭𝐡𝐞 𝐧𝐞𝐰 2022 𝐭𝐚𝐱 𝐫𝐮𝐥𝐞 𝐟𝐨𝐫 𝐜𝐚𝐬𝐡 𝐚𝐩𝐩 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐚𝐟𝐟𝐞𝐜𝐭 𝐲𝐨𝐮𝐫 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬?

If you pay or receive funds electronically through payment apps such as Zelle, Venmo, Cash App and Paypal the IRS will now be tracking those payments by cross referencing the 1099-k that the processor will generate to your tax return.

𝐈𝐟 𝐲𝐨𝐮 𝐫𝐞𝐜𝐞𝐢𝐯𝐞 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 $600 𝐟𝐨𝐫 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐭𝐨𝐰𝐚𝐫𝐝𝐬 𝐠𝐨𝐨𝐝𝐬 𝐨𝐫 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬 𝐨𝐯𝐞𝐫 𝐭𝐡𝐞 𝐜𝐨𝐮𝐫𝐬𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐲𝐞𝐚𝐫, 𝐲𝐨𝐮𝐫 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐢𝐬 𝐫𝐞𝐩𝐨𝐫𝐭𝐞𝐝 𝐭𝐨 𝐭𝐡𝐞 𝐈𝐑𝐒.

If your payment record keeping and bookkeeping processes are sub-par, you better get ahead of the change and consult with a qualified accounting professional that can help navigate the new obligation.

If you are in the estimated 30 million small businesses, solopreneurs, and independent contractors that avoided reporting the income now is the time to make the change.