Venmo, Cash App, and Zelle Now Required to Report Transactions Over $600 to IRS and Users Are Upset

A photo of the Internal Revenue Service headquarters building in the Federal Triangle section of Washington, on April 27, 2020. Chip Somodevilla/Getty Images

A new tax law that took effect at the start of 2022 is not being welcomed by users of mobile payment services.

What Happened

Starting this year, the IRS is requiring mobile payment apps such as Zelle, Block Inc.’s Cash App and Paypal Holdings Inc.’s Venmo to report business transactions totaling more than $600.

The new provision only affects businesses that accept payment cards or use third-party network settlement organizations for payment of goods and services, according to the Internal Revenue Service.