Transaction is the word I use, not transfer, just in case you mentioned transfer for some other reason. My reason is deliberate. Some kinds of transactions are tax events, others aren’t. Venmo has no way of knowing. Anybody doing automated 1099s has no way of knowing.
1099s just tell the IRS to look for a tax filing from the same tax ID that matches.
That's sort of my point. If they don't know, they don't have to file one. You only need to file one if it's taxable. And I think this is all moot since I believe they differentiate between business and personal transactions, right?
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Transaction is the word I use, not transfer, just in case you mentioned transfer for some other reason. My reason is deliberate. Some kinds of transactions are tax events, others aren’t. Venmo has no way of knowing. Anybody doing automated 1099s has no way of knowing.
1099s just tell the IRS to look for a tax filing from the same tax ID that matches.
That's sort of my point. If they don't know, they don't have to file one. You only need to file one if it's taxable. And I think this is all moot since I believe they differentiate between business and personal transactions, right?