Many of who have probably heard about the new IRS requirement of any $600 or more transaction on sites like Venmo and PayPal need to be reported when you file your taxes with certain exceptions.
This is being reported as an attack on small business by some in the media, but I believe it to be something else. I feel that the government has realized that the non-participation labor rate with the 25 to 40 age bracket is so large that they are convinced that people are using alternative methods for income (i.e. under the table). And they are receiving payment through the electronic transfer process.
For example, if you work for a contractor with an agreed upon under the table salary of $800 a week, how do you get paid? He or she can't write a check and you don't want that much cash to carry until you get to the bank. A fee free transfer makes the most sense. That $600 figure is not arbitrary. It calculated based on something.
What will be interesting is what happens after some time passes and they don't capture the additional revenue from this. What will come next?