Mobile payment apps will now be reviewed during tax season

STARKVILLE, Miss. – If you are a business owner and you use mobile payment apps to receive funds you may want to check the mailbox.

There is a new protocol stating that anyone who receives 600 dollars or more in funds through mobile payment apps like Venmo, PayPal, or cash app could receive a 1099 k form from the IRS.

Dennise Williams, owner of Dennise Williams photography says that this is nothing new to her and she has received this form for years.

“I’ve been using PayPal for a couple of years and they’ll actually send me a form at the end of the year which everything that goes in a just transfer to the business account so everything is counted for but they’ll send me a tax form at the end of the year, ” said Williams.

It seems that PayPal has been doing this for years but Cashapp and Venmo are starting to follow suit.

“Venmo and cash app is new to me in 2021 so I’m not really sure how it’s going to map out but it’s the same thing it goes to my business account and it all accounted for just the fees have been a huge issue you know as far as PayPal,” said Williams.

Kristine Little, an accountant at T.E. Lott says that businesses will see changes in their tax forms but personal accounts shouldn’t be affected.

” In regards to businesses, it’s going to be different in regards to 10 99 k reporting with cash app Paypal and Venmo transactions they are now going through new reporting guidelines with the IRS With any of these people to person transactions the business platforms are always being set up to receive goods or services so they’re already set up to have the fees for any goods or services so businesses set up for these are really in the clear there’s not much that has changed except they’ll receive a 10 99 k,” said Little.

Little also advises keeping business and personal accounts separate.

If an error does occur don’t hesitate to report the problem to your accountant to fix the problem.