ilmscore | IRS $600 Tax Rule for 2025 Changed (Venmo - Cash App - PayPal)

IRS $600 Tax Rule for 2025 Changed (Venmo - Cash App - PayPal)

Published: 2025-11-05
Status: Available | Analyzed

Predictions from this Video

Total: 12
Correct: 8
Incorrect: 3
Pending: 1
Unrated: 0
Prediction
Topic
Status
The IRS 1099K reporting threshold will revert to $20,000 and 200 transactions.
"So, we're talking about you have to receive $20,000 in payments and more than 200 transactions. So you have to have both. Both conditions must be met."
IRS 1099K Reporting Threshold
Incorrect
The $600 IRS 1099K reporting threshold is no longer in effect.
"So, the $600 rule is gone."
IRS 1099K Reporting Threshold
Correct
The One Big Beautiful Bill (OBB) overrides the long-term plan to implement a $600 IRS 1099K reporting threshold.
"But the OBB overrides that long-term $600 plan."
IRS 1099K Reporting Threshold
Incorrect
The IRS will soon issue updated guidance regarding 1099K reporting requirements following the OBB legislation.
"So, we're going to get more clarity from the IRS soon. And once the IRS updates their guidance, you know, because of the OBB, I'll give you an update as quickly as possible."
IRS 1099K Reporting Guidance
Correct
Casual sellers will likely not receive 1099K forms under the new regulations.
"Casual sellers are basically going to be safe again. Like you don't have to worry about this 1099K being issued to you."
Casual Sellers and 1099K
Correct
Payment platforms can still voluntarily issue 1099K forms even if individuals do not meet the reporting threshold.
"Platforms are still allowed to issue you a 1099K even though you don't meet that threshold. So what I'm basically saying is that they can still voluntarily send it to you."
Platform 1099K Issuance
Correct
Payment platforms are unlikely to voluntarily issue 1099K forms to save on processing costs.
"So, if they're not required to send you a 1099K, then most likely they're not going to they're not going to send you one in order to save money."
Platform 1099K Issuance
Incorrect
The IRS will maintain its existing enforcement mechanisms, including form matching, issuing letters for missing income, and auditing individuals who cannot substantiate their cost basis or expenses.
"So, the IRS still has the same enforcement system. They're they're still going to match forms. They're still going to send letters if income is missing. They're still going to audit people who can't prove their cost basis or the expenses that they're looking for."
IRS Enforcement System
Correct
Despite fewer 1099Ks being issued, the IRS audit process will remain unchanged, with individuals presumed guilty until they can prove their innocence.
"So, even though fewer 1099Ks are going to be issued out, it's still going to be the same old system. It's going to be the same old system where the IRS, if they audit you or examine you, they're still going to classify you as guilty until you can prove yourself innocent."
IRS Audits
Pending
Zelle will continue to be exempt from 1099K reporting requirements as it functions as a bank-to-bank messaging system, not a third-party settlement organization or payment processor.
"So, because Zel is not a third-party settlement organization. They're not a payment processor. So, Zel is a banktobank messaging system. So, this is still going to remain exempt."
Zelle and 1099K
Correct
Individuals are still obligated to report all income, regardless of whether a 1099K form is received, as the threshold is for reporting purposes, not tax avoidance.
"You still have to report your income even if you didn't get a 1099K. That has never changed. The threshold is only a reporting rule. It's not a tax avoidance rule."
Income Reporting
Correct
The IRS will continue to track income, match forms, conduct audits, and require documentation.
"The IRS is still going to track income. The IRS is still going to match forms. They're still going to audit. And the IRS still expects documentation."
IRS Tracking Income
Correct