Gatlin Tax, Ltd.

Gatlin Tax, Ltd. Minneapolis CPA firm — tax, IRS resolution & credentialed business valuations. Twin Cities & nationwide.

01/20/2026
01/04/2026

How the IRS sees Venmo activity

1. Via information reporting (Form 1099-K)

Venmo (owned by PayPal) is required to report business-related payments to the IRS under IRC §6050W.

Current federal rule (as of now):

A Form 1099-K is issued only if:

Gross payments exceed $20,000 AND

More than 200 transactions in a year

(The widely discussed $600 threshold has been delayed at the federal level, though some states already use lower thresholds.)

If a 1099-K is issued:

Venmo sends it to you

Venmo also sends it to the Internal Revenue Service

The IRS computer system matches it against your return

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