Zelle itself does not report transactions directly to the IRS (Internal Revenue Service). Zelle is a peer-to-peer payment service that facilitates the transfer of money between individuals, and it is not responsible for tax reporting.

Financial institutions, including banks that support Zelle transactions, are generally required to report certain types of transactions to the IRS. For example, if you receive interest income or dividends from a bank account, the bank may report that income to the IRS. They are also required to report large cash transactions and other suspicious activities as part of anti-money laundering regulations.

Individuals are responsible for reporting their income to the IRS, including any income received through Zelle or other peer-to-peer payment services. If you use Zelle for business transactions, it’s crucial to keep accurate records and report your income appropriately when filing your taxes.

It’s always advisable to consult with a tax professional or accountant for personalized advice based on your specific financial situation and transactions. Tax laws and regulations can vary, and a professional can provide guidance tailored to your needs.