Reporting Requirement for Online Payments Delayed (January 10, 2022)

On December 23, 2022, the IRS announced that third-party settlement organizations will not have to report 2022 tax year transactions in accordance with the new $600 threshold established by the American Rescue Plan of 2021. 2022 will be regarded as a “transition year” for these reporting requirements, but the old threshold of reporting ($20,000 in payments from more than 200 transactions) will remain in effect.

See IRS announces delay for implementation of $600 reporting threshold for third-party payment platforms’ Forms 1099-K

See also Notice 2023-10

See also Will I Have to Pay Taxes on My Online Payments? (Forbes)

Posted by Benjamin Sapozhnikov, Associate Editor, Wealth Strategies Journal.