From Tampa Bay Times:
So, it makes sense that a new Treasury Department proposal that would modify financial reporting requirements for banks and cash apps has thrown some people into a tizzy.
But some of the plan’s details have become muddled on the internet. One variation of the rumor warns that a Biden proposal will allow the government to monitor every bank account transaction or cash app withdrawal and deposit.
Conservative commentator Candace Owens repeated this in a tweet, writing that “the Biden administration is attempting to empower the IRS to monitor every single withdrawal, deposit, and transaction you make from your personal banking accounts, PayPal, Venmo, etc..”
But this isn’t right. First, The American Rescue Plan Act, which was passed by Congress in March, has a provision that will go into effect on Jan. 1 that requires cash apps like Venmo, PayPal and Zelle to send information reports to merchants and the IRS regarding business transactions totaling more than $600. Previously, cash apps were required to report only business transactions over $20,000 from accounts with at least 200 separate payments in a calendar year.
Do you have a complaint about PayPal or Venmo, such as locked accounts or funds seized for unspecified Acceptable Use Policy violations? Take your claim to FairShake, the consumer advocacy service.