“The law requiring the issuance of forms 1099-K applies to third-party payment networks that handle the settlement of funds. Those online platforms are likely to issue you and the IRS a 1099-K as well.īut anyone who uses The Zelle Network - which sends money directly between US bank accounts - will not receive a 1099-K for business transactions because Zelle’s parent company, Early Warning Systems, said Zelle is exempt from the reporting rule and issued an FAQ on the matter. Instead, it only pertains to Cash for Business accounts, and applies only to payments received in 2022.”ĬashApp has not replied to requests for comment on how it will handle reporting for accounts in which users might mix personal and potentially reportable business transactions.Īs for anyone used to making a little money on the side by occasionally renting out their place on Airbnb, or selling some handmade goods on Etsy, the new $600 reporting threshold will affect you, too. On it the company notes, “this new $600 reporting requirement does not apply to personal Cash App accounts.
Square’s Cash App includes a partially updated page for users with Cash App for Business accounts.
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