IRS cracking down on digital payments, unpaid taxes
(KYMA, KECY/ CNN) - If you use PayPal or Venmo for business transactions, the IRS might be looking more closely at your accounts.
It now requires electronic payment apps to report such transactions if they total more than $600 a year.
Business transactions include payments for goods and services.
Now taxpayers have always been required to pay tax on those, but now the IRS might know if you don't.
The change is part of the American Rescue Plan and it's designed to crack down on unpaid taxes. The change does not affect reimbursements among family and friends.
