New IRS regulations will require payments for services paid via services like Venmo, CashApp to be reported tonthe IRS on Form 1099-K.  So provider recipients will be subject to taxes on those payments. What is less clear is what information will be included in the Form 1099-K.  Some sources indicate that those forms, issued by the payment app, will include the true identity of each payor - so there will be a loss of anonymity for transactions where that is a concern. Still unclear, but probably wise to revert to good old paper cash for payments to providers.

Do you or anyone know what year this will start?  I think i heard this year ???   And how do they know any transfer is for a service.  

Good Qs. Still unanswered, AFAIK.
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See also: http://www.theeroticreview.com/discussion-boards/newbie---faq-33/re-if-you-dont-mind-the-electronic-trail-171489
"... below certain amounts, how to do they know the difference between a 1099 payment and a "this is for my share of the bar tab" payment? "