Fact check: False claim that Tulsi Gabbard used Venmo to trigger Nancy Pelosi IRS audit

Bayliss Wagner, USA TODAY
·5 min read
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The claim: Tulsi Gabbard sent Nancy Pelosi a Venmo payment of $600.01, forcing the IRS to audit Pelosi

Some social media users are praising former Democratic Rep. Tulsi Gabbard for supposedly prompting the IRS to scrutinize House Speaker Nancy Pelosi's taxes.

"Tulsi Gabbard Venmos Nancy Pelosi $600.01 forcing the IRS to audit her finances (sic)," reads the text in an Aug. 18 Facebook post that was shared at least 75 times.

The claim first surfaced in a tweet from News That Matters on Aug. 16, the same day President Joe Biden signed a bill that increases IRS enforcement. The tweet received more than 20,000 likes and was used in several other Facebook posts, including one with more than 640 shares.

The claim also circulated in articles by The Raging Patriot and other far-right websites.

But the story these posts tell is wrong.

First, there is no evidence that Gabbard made a $600.01 Venmo transfer to Pelosi. The News That Matters account where it started is known for satirical content.

Second, even if Pelosi had received the payment, it would not have "forced" the IRS to audit her tax returns, a spokesperson for the agency told USA TODAY. It could potentially get Venmo to send her a tax form, however, according to the company's website.

USA TODAY reached out to News That Matters and a user who shared the Facebook post for comment.

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Former Rep. Tulsi Gabbard, D-Hawaii, in Peterborough, N.H., on March 22, 2019.
Former Rep. Tulsi Gabbard, D-Hawaii, in Peterborough, N.H., on March 22, 2019.

No evidence for claim; seems to have originated as satire

There are no credible news reports that Gabbard sent Pelosi a Venmo payment of $600.01, as other independent fact-checking outlets have also reported.

The only source provided for the claim is a supposed "exclusive interview" between Gabbard and Genesius Times, a self-described satirical website. The Raging Patriot cited the supposed interview with Gabbard in its article about the made-up Pelosi audit.

The misinformation about the Venmo payment has been largely spread by News That Matters, a Twitter account that regularly shares fabricated stories that are humorous in nature. News That Matters has a partnership with Genesius Times.

News That Matters recently tweeted a related claim about the IRS – that Congress voted to exempt itself from the agency's audits. That made-up story was taken seriously by users on Facebook and other platforms, as USA TODAY reported.

USA TODAY reached out to the offices of Pelosi and Gabbard for comment.

Fact check: Claim about the IRS monitoring bank accounts over $600 exaggerates reality

Untrue that a $600.01 Venmo payment would force an IRS audit

According to the claim, Gabbard's supposed Venmo payment "forced" the IRS to audit Pelosi. But even if the payment had been made, the IRS does not automatically audit someone if they receive a $600.01 Venmo transfer.

A new tax policy created by the American Rescue Plan did go into effect this year requiring third-party payment processors such as Venmo and Paypal to report commercial transactions if they total $600 or more in a year.

The policy does not apply to personal transactions, such as payments to family and friends for dinners or personal gifts, according to the IRS website.

It also would not "force" the recipient of a payment of at least $600 to be audited, IRS spokesperson Bruce Friedland told USA TODAY.

The suggestion that "information reporting triggers automatic audits is false," Friedland wrote in an email.

Venmo has a section on its website about the new tax policy, and it notifies users that it is required to send an IRS form to someone when they receive "at least $600 in payments for goods and services through Venmo." 

USA TODAY previously debunked misconceptions about new reporting rules for third-party payment processors in September 2021.

Fact check: Treasury proposal wouldn't levy new tax on PayPal, Venmo transactions

Our rating: False

Based on our research, we rate FALSE the claim that Gabbard sent Pelosi a Venmo payment of $600.01, forcing the IRS to audit Pelosi. The claim originated from a satirical account, and there is no credible evidence that this payment occurred. Furthermore, a Venmo payment of $600.01 does not "force" the recipient to be audited by the IRS. Payments of $600 in a year or more can prompt Venmo to send users an IRS form.

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This article originally appeared on USA TODAY: Fact check: False claim Tulsi Gabbard sent $600.01 to Nancy Pelosi