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B2B Vault Episode 39: Breaking News – IRS & $600 Business Transactions

Written by Allen Kopelman

January 6, 2022

merchant statement analysis

Video Transcription

Hey, welcome to B2B Vault, and today we’ve got breaking news. The white house announces that there will be a new IRS people. And they’re going to go after anyone who’s using Venmo, PayPal cash app, and all these other apps that are like the person-to-person transfer things, but they’re using them for their business. So even if you’re using it personally, they’re going to require these companies to report any transactions exceeding $600, not in a transaction per year.

So you better keep good records of somebody you’re going to, you know, like these, these apps advertise, oh yeah. You go to dinner with your friend, and you pay. And then your friend owes you 20 bucks, 50 bucks, a hundred bucks, right? Or you need to get some money from a friend, or maybe you’re a parent, and you’re sending money to your child at college. And you’re sending them money with Cashapp or Venmo. Well, you needed to keep track of these transactions and what they’re for because those companies are going to start issuing probably 1099s, which is what the credit card companies we work with. So nationwide payment systems and they had to start issuing reporting. I don’t even remember. It’s like five, six years ago or longer when that all started. And you know, we have to make sure everybody’s federal tax ID matches and all that. And if you’re registered, if you’re a business, you’re having people, Venmo, you and PayPal, you and cash app you to your business account. That means that those platforms have your social security number. And those 10 90 nines are going to be reported to your taxes and not to your business.

So that’s like co-mingling funds. Also, some of these companies are starting to crack down and look to see like, oh, this person’s getting money every day. And they’re going to make people they’re going to, because of this new requirement from the IRS pay pal cash app, Venmo square, all these companies who have all these transfer people to person transfers of money. They’re going to see people who are doing excessive amounts of transacting. And they’re going to say, oh, I don’t remember you switching to a business account. So many people are using these platforms to avoid the payment merchant service fees. Okay. So PayPal will ensue on a 2.7 to 3.5 Venmo, 1.9 and 10 cents cash app, 2.7, 5% and square their product. They’re going to start hitting people for 2.6%. So they’re going to, they’re going to start looking at people, these platforms because businesses don’t want to deal with the IRS. They don’t want to deal with all that reporting because they have to do that anyway from their business side of things, but they charge you money to process business transactions. So this is, this is on the way. The taxes will hurt small businesses. I’ve walked into many small businesses like hay or salons, or even people with a lawn service or a small pool service or babysitters and different things like that. Everybody needs to be aware of this because if you have been claiming this money, you will get a rude awakening.

After all, they’re going to be required in 2022 to send reporting. So all bets are off when they said only people over $400,000, they’re going to pay more tax. Well, guess what? That’s good. Just throw that out the window. Because between this rule, and then we have the bank reporting rule where they’re going to track people who transact over $600 in their bank accounts, that rule the new cryptocurrency rules, where you’re going to pay taxes on cryptocurrency. And they have two levels of tax on those crypto transactions. If you held it for less than a year and one, if you had it, and then it’s a little lower if you held it more than a year, but they’re going to tax all kinds of stuff. They’re taxing everything. So all this stuff about there was no new taxes for people with less than $400,000. That’s just gone. But let’s say you’re a merchant, and you want to; you don’t want to pay merchant fees. You want to avoid paying merchant fees for your business. Okay? Simple. We have a program on how to pay zero to set you up under what’s called cash discount. You can use a mobile card reader. You can use invoicing; you can use, you could do it on your website. You could do it through a point of sale terminal that you have on the counter, which we provide to you.

Okay? So you can do it that way. It passes a small fee onto the customer, and then essentially, you’re paying zero for credit card processing. So there are all kinds of ways to do it. I wrote an ebook about it. You can go to the website, which we’ll post at the bottom of the podcast pays zero.info. You put in your email address, you can download the book, and it’s, you know, a great way to deal with, you know, with what’s going on right now. So every, you know, if you’re a business owner and you’ve been using all these pay services, Venmo cash app, et cetera, and you want to pay zero for credit card processing, you know, check out our ebook, pay zero.info. I’ll put it back up. And the video goes to the website payzero.info. You can also visit nationwide payments. You can visit NPSbank.com, go to the cash discount page, get information about cash discounts. It’s real easy. You can book an appointment, fill out a form. You can apply now, and we can get you set up quickly and get your business approved. And then you can still pay zero because you can pass the small fee that would get charged onto your customers.

So thank you today for listening to B2B Vault – The Payment Technology Podcast. This is breaking news because this just came out this morning. It’s been all over every TV station. So take a look at that. Everybody have a great day Carpe Diem from B2B Vault, and we’re out.

Merchant Statement Analysis | Merchant Services Statement Analysis

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