4 ms·

But how will venmo know what is commercial vs. paying rent? If you can mark it as rent and they won’t report, then merchants will just mark everything in such w

• ziml77 5y ago
  It's up to you to the both parties to ensure that the payment is marked correctly. And services like Paypal already have a reason to kick people off who aren't choosing the right transaction type. Paypal doesn't take a fee from friends & family and other gift payments, so it's already in their best interest to find who's abusing it. Also I can't imagine the platform would be liable if they are not the direct cause of misreported transactions.
• ketzo 5y ago
  Venmo is already trying to solve this by incentivizing users to flag payments themselves. When you go to pay someone, there's a pretty big box on the screen that says "Are you paying for goods or services? Protect your purchase here" with a little toggle button, and an explanation that the seller will pay a fee in return for you being able to get a refund.
• pests 5y ago
  It's not up to Venmo to report. They are just providing extra information to the IRS to cross check. Even if you mark it as such in-app; as a business you still have a legal duty to correctly report the income your business made. Not doing so is already illegal. This just helps the IRS catch this type of fruad easier. There's no extra taxes or anything - the $600 or more is taxed when reported correctly (as it was before this change, and how amounts under $600 are taxed as well - business income).