What information does the IRS collect from taxpayers on Venmo, PayPal?

With tax season officially underway, Americans should be on the lookout for new laws that could affect their taxes.

That includes millions of self-employed individuals and other people with side hustles who rely on payment apps like Venmo, PayPal and Cash App – and who could be subject to a new tax law that just took effect in January.

Beginning this year, third-party payment processors will be required to report a user's business transactions to the IRS if they exceed $600 for the year. The payment apps were previously required to send users Form 1099-K if their gross income exceeded $20,000 or they had 200 separate transactions within a calendar year.

The new rule is intended to help crack down on tax cheats.