DOTHAN, Alabama (WDHN) – The stress and time that comes with holiday shopping has led many people to turn to the web for all of their gifting needs.
But there are many risks associated with using the Internet that you might not find in a traditional store. And using third-party payment apps like Venmo and Cash App puts users at more risk during the holiday season.
âThere are so many hackers who will create fake Venmo-type accounts or some of these others,â said Thomas Parish, owner of ATC Group. “And of course, whatever you buy online, you risk being a con, to begin with.”
But consumers aren’t the only ones who get notified when using these payment apps. The IRS has started monitoring apps like these to make sure businesses and sellers, who primarily use cash payment apps, report their income on their taxes.
After any business transaction via cash applications of $ 600 or more, the IRS may take a closer look at your account.
âIf you offer a service, or if you sell a product for more than what you paid for, it’s income and it has to be reported,â Parish said. “The IRS carefully reviews these transactions through Venmo, Paypal, and other treasury applications to make sure you report them because they will be able to track them.”
To make sure you stay safe while shopping online this holiday season, there are ways to avoid getting ripped off.
âStick to secure sites,â Parish said. âGo to the places you know are correct. If you can buy with a credit card so that if something goes wrong with that transaction, you can come back and beat the charges on your credit card.
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