If you use Venmo, Cash App, PayPal, eBay, etc., to send or receive payments, this may apply to you! U.S. tax law states that “gross income is ALL income received from whatever source derived.” Some people are under the false impression that if you do not receive a Form 1099 or federal W-2 form, you do not need to report the income. That is a dangerous perception, considering the severity of tax penalties for knowingly underreporting your income to the Internal Revenue Service (IRS). The “tax gap” in the U.S., defined as the difference in the taxes owed versus the taxes that were paid, was estimated at over $600 billion in 2020. The IRS has taken steps to reduce the tax gap, and one way is by reducing the threshold at which businesses and individuals must file Form 1099-K to report payments.