New IRS rules around cash/pay apps

Welcome to Discuss Fastpitch

Your FREE Account is waiting to the Best Softball Community on the Web.

CoreSoftball20

Wilson = Evil Empire
DFP Vendor
Dec 27, 2012
6,215
113
Kunkletown, PA
We were joking about that stuff the other day.

Dont forget to claim the worth of all your stolen items and any monies you made from any illegal activites :)
 
Jul 5, 2016
652
63
A lot of IRS rules end up being extra accounting work for people who know about them and an expensive trap for people who are unaware of the rules.

For organizations with proper accounting advice, these rules will just be another bit of procedure to follow.
 

JOHNN

Just a dad of 3 girls
Aug 5, 2019
375
43
South Louisiana
Talking about that I came across something the IRS posted and I was ok…. Lol


*Bribes. If you receive a bribe, include it in your
income.
*Illegal activities. Income from illegal
activities, such as money from dealing illegal
drugs, must be included in your income on
Schedule 1 (Form 1040), line 8z, or on Schedule
C (Form 1040) if from your self-employment
activity.
Stolen property. If you steal property, you
must report its fair market value in your
income in the year you steal it unless you
return it to its rightful owner in the same year.

this is all over the internet lol
If only Al Capone would have seen this back in the day.
 

PDM

Jun 18, 2019
165
43
NJ
New IRS rules went into place on Jan 1. Payments over $600 annually through pay apps like Venmo, PayPal, Zelle, etc will be counted as income for the recipient. They will send a 1099 at the end of 2022.

Our team uses these apps to collect funds that 100% go back into the team for tournaments and such.

How are teams handling this cha
**Not an accountant or a lawyer

The new law requires Venmo etc. to issue a 1099K, which may include both taxable and non-taxable monies. Team fees, which are basically a reimbursement for money laid out by the coach, are not taxable.

Obviously, for-profit teams and coaches who use payment apps will already have income reporting in place. But if you’re just collecting fees to pay for tournaments, training space, uniforms, etc. you should be fine. It’s always a good idea to keep excellent records.

Thanks for pointing this out, btw. Some people might be in for a nasty surprise if they didn’t know it was coming.

Sent from my iPhone using Tapatalk
Yes, it's all about keeping records. If you get that 1099 you need receipts showing how that money went back out and report that on your organization's tax forms as well. These rules have existed for a long time. It's just making Venmo and other apps report the income that is now being enforced. Hire an accountant.
 

Members online

Forum statistics

Threads
42,830
Messages
679,478
Members
21,445
Latest member
Bmac81802
Top