Reply to So people will be taxed on venmo and zelle transactions?

Forum Index » Money and Finances

Reply to "So people will be taxed on venmo and zelle transactions?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]Practically I think this is kind of a disaster.  People who run small businesses have been using it as a tax cheat, but it’s going o be hard to distinguish between those people and the people that are collecting money for the class teacher gift or the shared summer rental or whatever.   I’m not sure what the irs is going to do with all this information.[/quote]

Agree. If I'm a therapist and getting paid $500 per session on Venmo, couldn't I just say it was a friend paying me back for a trip or something like that? I guess if you are regularly getting large payments from the same people it might be harder to justify those amounts as someone paying you back. I used the therapist example because my friend is a therapist and she got audited last year, in part because so many of her payments were on Venmo. Now she doesn't want to be reimbursed through Venmo for anything because she wants it to be work only to avoid confusion if she gets audited again. I think small biz folks might end up going in that direction so they don't accidentally report a BBQ reimbursement as income.[/quote]

Your friend didn’t get audited because she was paid by Venmo.  She got audited either because there was something fishy on her return or she just got unlucky in the draw.  Then, once she got audited, they looked at her Venmo.

Auditors are not idiots.  They can tell which payments are for services and which are of the more random, reimbursement type.  Also, all she has to do is set up a business account on Venmo that’s separate from her personal account. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics