The IRS said Friday it was delaying a new plan that would have subjected Americans’ electronic payments on apps such as PayPal and Venmo to new scrutiny, bowing to intense pressure from consumers and Congress.
The rule would have required companies to file a form showing total payments of $600 or more for taxable transactions. With the delay, the old threshold for reporting — at least 200 transactions and $20,000 in total payments — remains in effect for the tax year 2022.
Acting IRS Commissioner Doug O’Donnell said this year will now be a “transition period” so consumers and companies can figure things out.