The FEDS are cracking down on business income reporting and your business could be affected. 

Do you use Cash App, Venmo, PayPal or Zelle for personal use or business? 

If you answered yes, you could be affected by the new IRS rule that's taking effect on January 1st, 2022. This new initiative will allow the government to look into any transactions with the apps above that's over $600. 

What does that mean for you and your business?

While your transactions are safe the lines can become a bit blurry if you are using the same account for both your business and your personal life. A lot of business owners who may offer services such as hairstylist, esthetician's, barbers, etc typically use the same account when accepting payments. A flow of large sums of money could potentially cause a red flag for you. 

According to KXXV, this new rule has been put into place to bridge a tax gap of billions of dollars from lack of taxpayer compliance in reporting. previously the IRS didn't look into accounts unless the transactions reached $20,000. With a little over a $19,000 difference business owners should beware. 

What should you do moving forward?

Business owners are being advised to create a separate Cash App account from their personal and you should also keep a good record of all taxable transactions and those that are not. If you fall into the $600 or more category be on the look out for a 1099-K form during tax time next year. 

 

Meet Texas' Most Wanted Fugitives

 

LOOK INSIDE: Marfa's Santa Fe Railroad 'House' Belongs in Temple

Marfa is home to some pretty weird stuff. You've got the famous Marfa Lights, the mini Prada store, the Wrong Store, and Building 98, and that's all great, but they've been holding on to something that, in our opinion, belongs here in Temple.

Let's take a look inside this retired Santa Fe caboose. It could use some TLC, but it's in surprisingly good shape. If you've got $254,000 lying around and want to buy this piece of Texas history, Lauren Meader Fowlkes with the Odessa Board of Realtors can help you out.