The problem with the current cash app reporting is anyone who receives $600 total for a year automatically gets issued a 1099 and corresponding one to the IRS. From my understanding, you get one regardless if the money received is for legitimate business purposes/income or just reimbursements over the year of you reimbursing someone for lunch, or picking up kids concessions while you were at another ball field etc. If the 1099 isn't business income, the taxpayer doesn't have to include it on their tax return. If it is, the taxpayer is supposed to include it on their tax return. The IRS applies whatever metrics they use to select taxpayers' for "testing" and begins testing.
I'm not a big fan of this method because it will, at some point increase the number of people who are audited, and going through an audit, even if you have "nothing to hide" is a MAJOR, MAJOR inconvenience and time-consuming exercise for the taxpayer. I don't care what the government says. If they said there were millions of dollars of untaxed income going through cash apps, you can bet your rear end they will audit it. It doesn't make sense not to.