A regulation that has garnered significant attention from small businesses in recent years involves the taxation of payments received through third-party apps such as PayPal, Cash App, Venmo, and similar platforms. Previously, the reporting threshold for earnings through these platforms was set at $20,000 and 200 transactions. However, the American Rescue Plan Act significantly reduced this threshold to $600, with no minimum transaction requirement.

Although implementation of this regulation was delayed for the past two years, small businesses filing taxes for 2024 will now be required to report and pay taxes on earnings exceeding $5,000. This phased approach aims to gradually implement the $600 reporting threshold in the coming years.