Most Adults Arent Worried About Income Tax Liability for Online Payments. Gen Zers Are the Except
Though the Internal Revenue Service has pushed back plans to require payment providers such as Venmo and PayPal to send tax forms to Americans who received more than $600 from business transactions through the platforms, a new Morning Consult survey finds that 2 in 3 U.S. adults are not concerned about the tax collection changes. Roughly half of Gen Zers, however, are concerned about the new tax implications.
Tax preparation pros decry confusion over new rules
With tax season in full swing, Americans who have used payment platforms such as PayPal or Cash App to collect more than $600 in funds annually may be breathing a sigh of relief this year. Previously, the IRS had required payments providers — popular with those who sell goods or services on sites like eBay, Airbnb, Poshmark and Etsy — to send users a 1099-K form if they had more than 200 transactions and received more than $20,000.
New rules issued by the IRS for the 2022 tax year would have lowered that threshold to $600 and eliminated the transaction total requirements, but following pushback from the tax industry on the grounds that tax pros weren’t ready to implement the new rules and the risk of users receiving 1099s for personal payments on the platforms, the IRS agreed to hold off on implementation for another year.
The IRS said late last year that beginning Jan. 1, 2023, all third-party settlement organizations (TPSOs) will be required to report total transactions to users that exceed a minimum of $600, though additional confusion may lie in what platforms qualify as a TPSO. The Congressional Research Service noted last year that TPSO status in the eyes of the IRS depends on the company’s legal structure — while Airbnb qualifies as a TPSO, Zelle does not.
The Feb. 14-17, 2023, survey was conducted among a representative sample of 2,201 U.S. adults, with an unweighted margin of error of plus or minus 2 percentage points.
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