IRS Cancels $600 1099-K Reporting Threshold Requirement for 2023

IRS announces delay in Form 1099-K reporting threshold for third party platform payments in 2023.
Following feedback from taxpayers, tax professionals and payment processors and to reduce taxpayer confusion, the Internal Revenue Service today released Notice 2023-74PDF announcing a delay of the new $600 Form 1099-K reporting threshold for third party settlement organizations for calendar year 2023.
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).
Source - www.irs.gov/ne...
DISCLAIMER
This video is intended for education purposes and should not be taken as legal, financial or tax advice. You should consult with a professional about your unique situation before acting on anything discussed in these videos. Freedomtax Accounting and Multiservices Inc., Freedom Insurance Financial Inc., Freedom Realty Source Inc., and Freedom Immigration International Inc. are providing educational content to help small business owners and individuals become more aware of certain issues and topics, but it cannot give blanket advice to a broad audience. Neither Freedomtax Accounting and Multiservices Inc., Freedom Insurance Financial Inc., Freedom Realty Source Inc., and Freedom Immigration International Inc. nor its members can be held liable for any use or misuse of this content.

[@dasbof]

Our government run by people who become multi millionaires in office but they want to know "hey where did you get that $600.00"??

[@Lulu-vi4wb]

Exactly!

[@JazzyMarineVet]

That is great news! The current administration seems to always go after small busineses and gig workers--- and not billion dollar companies who have lobbyists and help draft policy and laws.

[@gscottea2539]

The elephant in the room is that millions of people use these platforms to transfer funds between friends and family without it being associated with a business transaction.

[@mdarrar3018]

What I’m told that they’ll report this income on 1099-NEC for year 2023, instead of 1099K. It defeats the whole purpose and doesn’t make sense.

[@sokio317]

How about Poshmark, Uber, DoorDash, Amazon flex apps?

[@everlastbella8229]

Thank God. 🙏🏿

[@donaldwright5167]

I just received a 1099 from ebay for 2022 for 1200.00, and 1900.00 for 2023. Why is that and do I have to do some kind of amendment for my 2022 taxes?

[@vonsection]

Im confused do u need to pay for this year also when it comes back around or?

[@NarkoHamponTV]

Why send 2021 then ????

[@jennellrogers9007]

Is it 20,000 AND 200 transactions or either or 20,000 OR 200 transactions. Everyone is saying 20,000 AND 200 transactions

[@Assertaim]

Pretty sure it's or

[@alejandrojosevalero8637]

Esto aplica a personas naturales o solo empresas

[@jacobilewis9603]

Personas, wey

[@OrderFlyYT]

@@jacobilewis9603 A todos, persona y negocios.