CashApp Reports Your Transactions To The IRS

The IRS views digital transactions as a new frontier in the battle against an increasingly complex tax law.

CashApp Reports Your Transactions To The IRS

The CashApp company announced they will start reporting taxes to the IRS in efforts to increase transparency and combat money laundering. This should show you how much taxes you owe early on so you can prepare.

There are many digital wallets popping up in the market today, which is making it difficult for the IRS to monitor people’s transactions. A few of these wallets like Cashapp and Venmo make it easier for users to send or receive money, by using an email or phone number instead of linking a bank account

In a new memo, the agency warns that it may begin to demand information from companies including the popular app Cashapp and Venmo about any individual who receives over $20,000 in digital payments.

Beginning Jan. 1, 2022, third-party payment networks will be required to send user Form 1099-K. Please note that this is not in reference to 1099s in general, but rather one in particular: Form 1099-K.

Sink Or Swim Time

During the pandemic, the money printer was like “what limit?” Now that the economy has slowed down and houses are the cost of space stations, the IRS wants the pennies from your couch and scraps off your plate. The IRS claims its wants to make sure that these apps don’t get used for money laundering schemes. While the rich ride off into the Moon and dodge tax rules and regulations.

The federal government knows that Americans are getting creative to avoid paying their taxes so they have been focused on catching those who are being “sneaky”. Uncle Sam wants his cut of your untaxed dollars.

Being an average joe isn’t going to cut it in 2022, you need to be financially educated. It also may help to start a legitimate business.

Financial education is a hot topic in the business world. More and more people are learning about how to take control of their personal finances and make smart decisions to help them get ahead. These days, it’s difficult to find someone who has not watched an episode of Suze Orman or Dave Ramsey or read Rich Dad Poor Dad.