Everyone should be aware of the new provisions included in the American Rescue Plan Act. Payment credit, debit, and third-party payment networks like PayPal and Venmo are required to report to the IRS on Form 1099-K any annual accumulation of payments received of $600 or more. These provisions were delayed until 2023. Payments to Family and Friends are supposedly not reported by PayPal, however, as noted in the Classified rules for SMC, such payments for goods and services transacted using Friends and Family probably violate the PayPal agreement.
According to Zelle, their service is not impacted by the legislation.
My purpose in posting this is NOT to debate the legality, appropriateness, nor the specifics of the legislation, nor the PayPal rules on how to handle transactions that may occur by use of this Classified forum. It is simply to alert everyone to research this legislation for you own purposes.
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