because Zelle is a bank transfer system that does not meet the definition of a payment settlement entity
Which means that theyโll will not be required to report your income to the IRS or issue a 1099
BUT understand that those platforms will only report your income if you are using a BUSINESS bank account (with that specific platform) so the loophole is to use the Actual ZELLE platform
Starting 1/1/2022 if you receive more than $600 to a business account on an app like cash app or Venmo The income will be reported to the IRS unless you use the โZELLE TAX LOOPHOLEโ
The IRS monitoring your bank account was the only law that didnโt pass