How This New Accounting Rule Could Affect You

Cashback, discounts, and rewards have prompted many people to use cash apps to transact online. This phenomenon has proliferated during the pandemic and doesn’t look like it will be slowing down anytime soon.

Therefore, The Internal Revenue Service (IRS) is introducing a strict new rule to track cash app business transactions more effectively in 2022. It means business owners accepting Venmo, Zelle, and Cash App will be under greater scrutiny to report their income from these apps.

Currently, the IRS usually looks into cash app business transactions that cross the $20,000 threshold. However, if the transactions exceed $600 or more, they will now get examined in more detail.

Unfortunately, more government overreach is resulting in less flexibility and increased pressure to report all business income accurately. The new rule will affect business owners and individuals that have to report self-employed income on tax returns. While the situation may seem overwhelming, it’s essential not to panic, as a good bookkeeper can help.

If you require a bookkeeper to help you manage your cash app business transactions, get in touch with Pinnacle 1 – Goose Creek today. With over twenty years of experience, we will help you with all your accounting needs, as we specialize in tax preparation, bookkeeping, and payroll services.

Our goal is to make life easier for all our clients. So whether they are individuals needing to file their tax returns, or a business owner looking to keep their books in order, we can help. We offer a friendly atmosphere with helpful and knowledgeable people providing guidance every step of the way, which creates peace of mind for clients. We serve clients across Goose Creek, North Charleston, Hanahan, Moncks Corner, Ladson, and the surrounding areas.

If you have any questions about accounting, bookkeeping, and tax preparation in Goose Creek, South Carolina, please get in touch with us by clicking here. To learn more about the other accounting services we have to offer, please click here.