The IRS Will Reportedly Start Collecting Taxes On Venmo Transactions, Sparking A Surge Of Memes, Confusion And Backlash

A new rule by the Internal Revenue Service (IRS) that requires individuals making over $600 a year on online payment apps like Venmo, PayPal or Cashapp to pay taxes on that money received much attention on social media yesterday and today, following a Bloomberg article about the difficulty small business owners will face complying to the rules.

According to the Bloomberg article, the new regulations pose an “administrative headache,” forcing people who have side hustles or online businesses to send in 1099-K forms and keep more records and receipts on platforms that are reportedly not set up for that kind of compliance.

Venmo, Etsy and other companies that administer online marketplaces are also not happy about the new regulation, banding together in an attempt to oppose it.

"I'm going to need that original receipt."A new IRS rule means many small-business owners will face a bigger administrative burden for accepting payments on services like Venmo</a> and <a href="https://twitter.com/PayPal?ref_src=twsrc%5Etfw">PayPal . https://t.co/JBhkrNOCMS via @BW pic.twitter.com/rkgD8ChajI

— Narr Trek (@narrtrek) June 8, 2022

The vast majority of posters on platforms like Twitter were also unhappy with the rule changes and took to social media to voice their objections to the new change.

You know. Those thousands of new IRS agents are needed to go after big business fraud. Not mom and dad pop store fraud. No not at all. Until they do, which apparently is now. Maybe you were blind to it. Did not to see this coming. Maybe? 😆 #VENMO https://t.co/lZustou9wo pic.twitter.com/vAhmbZFIjc

— Nel Harrison (@harrison_nel) June 9, 2022

new weird al joint '1099 problems' bout to drop https://t.co/t8zhsBLMK3

— Ryan Lawler (@ryanlawler) June 8, 2022

Many seemed upset to see the IRS devote more resources to going after small business owners rather than oligarchs and corporations.

How it started: Tax the RichHow it's going: The IRS Is Coming for Your Venmo Incomehttps://t.co/MizjRoIAXA

— Stalingrad & Poorski (@Stalingrad_Poor) June 9, 2022

The IRS: we're understaffed, that's why we can't audit and tax billionaires appropriatelyAlso the IRS: we're coming after your venmo money, fuckersLike.. come on.

— Zoe, 1 month to Forest (@JustMeZoe419) June 9, 2022

Others wondered what the tax code changes could mean for their niche financial Venmo situations.

Us: “instead of asking for the check to be split 6 ways y’all just Venmo me.” IRS: pic.twitter.com/LCG9uWtvZK

— Andrew 🐏 (@Andrew_Micah6_8) June 9, 2022

If I win $601 in side bets on the golf course through Venmo, and the IRS taxes that, then by (current) law I get to account my losses…maybe even the expenses. How in the hell are they going to regulate every degenerate golfer in the US of A?

— Ellis Allen (@EllisAllen21) June 9, 2022

Some on Twitter reported that President Joe Biden was hiring thousands of new IRS workers specifically to enforce the new "Venmo tax." While the IRS will need new workers to enforce the complicated regulation, the reason the administration gives for hiring more people at the IRS is that the agency has not increased in size since 1970 (even as the population and complexity of the tax code have increased) and relies on outdated technology.

Every tax year, the IRS faces a backlog of unprocessed documents, and for 2021, that backlog was reportedly over 20 million. An inefficient IRS poses problems for lower-income taxpayers who face delays in receiving their tax refunds, as well as for the government, which some experts believe misses out on up to $600 billion of revenue a year due to staffing shortages.

President Biden just hired 60,000 new IRS agents to go after Venmo, Paypal and Ebay transactionsWhile billionaires get richer, Biden's war on the poor and middle class continues:https://t.co/tEAfFlCB2I

— Retro Tech Noir (@RetroTechNoir) June 9, 2022

While there was much kvetching over the new regulations, some managed to retain their sense of humor via memes and humorous takes despite the troubling news.

"The IRS is coming for your venmo income." -ominous, foreboding, scary "The IRS is cumming for your venmo income." 🍆 😏-attempt at seduction, funny, way less scary and shows the IRS is out to fuck us all

— terniaaaaa (@unicornzdonutz) June 9, 2022