The IRS has an upcoming rule regarding cash transfers that will affect taxpayers when they file taxes next year.

The new rule involves reporting any cash payments worth $600 or higher that recipients paid or received through third-party organizations when filing taxes. These third-party organizations, such as Venmo or PayPal, would be required to send the taxpayer a 1099-K form needed to report these payments when filing taxes, according to the IRS.

The rule marks an adjustment to a similar rule that has already been in place that required taxpayers to report any transactions of at least $20,000 made or received through third-party organizations or if 200 or more transactions through these organizations were made in a year.

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This new rule was intended to be implemented into the tax filing season this year but was pushed back in December 2022 to give both taxpayers and the organizations time to prepare for the change.

"To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes," said acting IRS Commissioner Doug O'Donnell. "The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements."

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Due to the delay in implementing this updated rule, tax filers will abide by the old rule. Any taxpayers who wish to get a head start with filing taxes for next year should keep track of any payments they make this year using third-party organizations over $600.

Additional information regarding this new rule can be found on the IRS's website.