Credit/debit card payments, PayPal, and other electronic payments processed by third parties are reported to the IRS if they are $600 or more. Transactions before 2021 were reportable only if they totaled $20,000 for more than 200 transactions. The Cut the Red Tape for Online Sales Act (S. 3840) would increase the threshold to $5,000 and would apply to transactions in 2022 and later. Chances of enactment? Who knows? #IdeaoftheDay
Barbara Weltman
Big Ideas for Small Business, Inc.
Subscribe and download our eBook, "150+ Tax Deductions for Small Business A to Z."
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