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IRS announces delay in Form 1099-K reporting threshold for third party platform payments in 2023

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pizzadude
Credit Mentor

IRS announces delay in Form 1099-K reporting threshold for third party platform payments in 2023

IRS announces delay in Form 1099-K reporting threshold for third party platform payments in 2023; pl...

 

As the IRS continues to work to implement the new law, the agency will treat 2023 as an additional transition year. This will reduce the potential confusion caused by the distribution of an estimated 44 million Forms 1099-K sent to many taxpayers who wouldn't expect one and may not have a tax obligation. As a result, reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023.

 

Given the complexity of the new provision, the large number of individual taxpayers affected and the need for stakeholders to have certainty with enough lead time, the IRS is planning for a threshold of $5,000 for tax year 2024 as part of a phase-in to implement the $600 reporting threshold enacted under the American Rescue Plan (ARP).

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
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BuckyB
New Contributor

Re: IRS announces delay in Form 1099-K reporting threshold for third party platform payments in 2023

Let's hope that's never enforced.  $600 is outrageous.

Message 2 of 3
Anonymalous
Valued Contributor

Re: IRS announces delay in Form 1099-K reporting threshold for third party platform payments in 2023


@BuckyB wrote:

Let's hope that's never enforced.  $600 is outrageous.


The government really wants that money.  I predict that once public outrage fades a little, it's going to be implemented.

Message 3 of 3
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