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NFT: Venmo P2P 1099 questions

olivert1985 : 9/16/2020 9:28 pm
Have a buddy who hosts weekly virtual card games during Covid. Some small games, some larger games. He’s been taking payments through Venmo and all of a sudden is freaking out reading online Venmo could send a 1099 for over 200 transactions AND $20,000+.

He’s never moved the money into his actual bank account, simply hosted the money in his “Venmo” account and paid out the winners. Also, does not have a business account, just a personal account.

Could a 1099 actually be sent if the money never transferred into his bank account? Any BBI accountants here?

Thanks for the info...
200  
pjcas18 : 9/16/2020 9:33 pm : link
transactions and $20,000 are the threshold for business payments when you will get a 1099.

You will not get a 1099 for personal use.
I had a similar issue with a credit card processing device  
regulator : 9/16/2020 11:32 pm : link
I used for reimbursement/pass-through of non-commercial expenses. I was issued a 1099 for about 22k in “income”. I wrote a letter to the IRS disputing the issue, setting forth the pass-through nature of the transactions (I had receipts) and it was resolved in my favor.

Kind of a pain to have to go through the process, though.
RE: 200  
olivert1985 : 9/17/2020 6:38 am : link
In comment 14975038 pjcas18 said:
Quote:
transactions and $20,000 are the threshold for business payments when you will get a 1099.

You will not get a 1099 for personal use.


Thanks for the reply. He was worried because he’s absolutely over the 200/20k. But makes sense seeing how he’s personal instead of business.

yep  
giantfan2000 : 9/17/2020 8:00 am : link
Quote:
He’s never moved the money into his actual bank account, simply hosted the money in his “Venmo” account and paid out the winners. Also, does not have a business account, just a personal account


this is Venmo 's strategy to slowly cut out the banks .. and make Venmo into virtual wallet

buy PayPal stock haha (they own Venmo)
just don't use venmo  
GiantsFan84 : 9/17/2020 7:34 pm : link
apple pay or cash app work juuuuuuuuuust fine
RE: just don't use venmo  
Jim in Fairfax : 9/17/2020 9:35 pm : link
In comment 14975641 GiantsFan84 said:
Quote:
apple pay or cash app work juuuuuuuuuust fine

They’re subject to the same IRS rules that Venmo is.
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