Society member tackles tax implications of using Venmo for business transactions

Written on Jan 23, 2020

By Nicole Fracasso, OSCPA communications intern

The popular payment app known as Venmo allows users to easily send and receive money through their mobile devices. While it is intended for personal use such reimbursing a friend for meals or tickets, many businesses have began using it as well.

In a recent article in Crain’s Cleveland Business, OSCPA member Jonathan Wolnik, CPA, CFF, CFE, tax attorney at McCarthy, Lebit, Crystal & Liffman in Cleveland, discusses the tax implications of using Venmo for business transactions.

According to the Venmo user agreement, the platform is not to be used to pay people you don’t know personally, especially if that payment is for a good or service.

“Unless Venmo expressly authorizes your payment for a good or service, for example, transactions with an authorized merchant or made with your Venmo Mastercard, it is restricted under this agreement.”

Even with this warning, several large organizations have already started offering customers the option of paying through Venmo, Wolnik writes. In addition, smaller organizations are using Venmo for vendor payments and employee expense reimbursements.

Read the piece in its entirety to learn the methods Wolnik thinks might be better suited for business-to-business transactions. 

Leave a comment