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[Tech8789]

Can someone help me understand this statement from venmo, “the reporting threshold for the 2023 tax year will return to $20,000 and 200 transactions” I never received a 1099 from them. 

[rjs]

You didn't get a 1099 because the payments you received were below the reporting threshold that applied for 2023. You would not get a 1099 for 2023 unless the total of the payments that you received was over $20,000 and you had more than 200 transactions. If any of the payments that you received in Venmo are taxable income, you can report the income on your tax return without a 1099.

[Tech8789]

What happens if I forgot to put the income into the return? Should I let them just figure out the issue and they’ll mail me? Or its worse case scenario? 

[rjs]

I'm not sure what you're asking. If you already filed your tax return and you omitted some income, you can file an amended return to add the income that you omitted. If you don't do that, and the IRS finds out about the omitted income, they will bill you for the additional tax that you owe, plus interest and penalties.

[Opus 17]

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@Tech8789 wrote:

What happens if I forgot to put the income into the return? Should I let them just figure out the issue and they’ll mail me? Or its worse case scenario? 

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Income taxes are partly on the honor system.  If you have income that is not reported to the IRS by the payer, you are still required to report that income and pay taxes on it, using your own accurate personal or business records.  

When a 1099 is issued, the IRS computers will look for matching income on your return, and if they don't find it, they will send you a letter and sometimes a tax bill.  If the income is not reported by the payer, the IRS computer does not have a specific way to identify you as a tax cheat, but they can and do perform both random and targeted audits.  If you are found to have intentionally under-reported your income, you can pay a large fine.