I'm afraid that folks are getting worked-up over nothing.
There are two different issues:
1) Under the 'American Rescue Plan Act', which Congress passed in March, there is a provision that requires cash apps like Square, Venmo, PayPal, and Zelle to file information reports on COMMERCIAL TRANSACTIONS over $600. This law goes into effect Jan. 1. Previously, such cash apps were only required to report commercial transactions over $20,000 for accounts with at least 200 separate payments in a calendar year. The new $600 threshold aligns with other long-standing reporting requirements, like businesses who pay outside contractors more than $600 in a year are required to issue a 1099-NEC to the contractor.
2) A separate administration PROPOSAL involves traditional bank accounts. If implemented, it would require financial institutions to report the total amount of deposits and withdrawals from most BUSINESS bank accounts that exceed $600, although during a presser by the Speaker of the House, she mentioned that threshold may end up being higher.
As part of a statement by the Treasury Department, they stated the proposal would NOT track withdrawals, deposits or transactions in bank accounts, or transactions or payments made on cash apps by INDIVIDUALS.