You are correct in that the money you are giving your friend is not income to them. However, if that amount exceeds the annual gift exclusion ($17,000 for 2023), you will have a gift tax reporting issue.
The information I have found from CashApp is that they will adhere to IRS guidelines and issue the 1099K to business accounts for 2023. If you account is set up as a personal, not business, you shouldn't receive the 1099.
https://cash.app/help/US/EN-US/6524-form-1099k-qualifications#:~:text=Cash%20App%20is%20required%20t....
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Elizabeth W, EA
