SAN DIEGO (KUSI) – Hidden within the Democrats “COVID Relief” law that was passed last March, is a new rule that requires digital payment companies like Venmo, PayPal and others, to report users who receive more than $600 in a year in “business” payments to the IRS.
The previous rule required reporting when the recipient got more than 200 payments, or received over $20,000.
But, the new rule is drawing harsh criticism from Republicans who say the Democrats are attacking the little guy.
As a result of the pandemic, many people began working from home, or providing their services outside their normal place of business. Those are the people who will be impacted by this new rule. For example, the neighborhood barber giving haircuts in his garage.
President Biden and the Democrats have championed their mission to make the rich pay their “fair share,” but this rule makes sure that working class Americans pay up.
Since so many viewers have asked about the details of this rule, KUSI’s Logan Byrnes asked Congressman Darrell Issa to explain what it does, and what he thinks about it.
Issa is against the rule, and explained Republicans can work to reduce the size and scope of the IRS once they take back Congress after the 2022 election.