IRS Adds Checkbox For Taxpayers Who Know They’re Being Weird About Venmo
The agency says the checkbox will save time for people whose payment notes tell a different story.
The IRS has added a checkbox for taxpayers who know they are being weird about Venmo, giving filers a place to admit the payment notes do not make things look better.
The new line appears under miscellaneous income and asks whether the taxpayer has ever labeled a transaction "rent lol," "for the thing," "not drugs," or a single eggplant that now has to sit in a federal database.
"We are trying to meet taxpayers where they are," said compliance modernization lead Renata Bell. "Where they are, unfortunately, is sending \$312 to someone named Moose with the memo 'don't tell Erin.'"
Tax software companies praised the update for reducing confusion, while several accountants asked whether crying softly into a shoebox of receipts counts as documentation.
The IRS said checking the box does not guarantee an audit, but it does let the agency know the taxpayer has already audited themselves in the shower.
