The National Taxpayer Advocate has made available for download their article, “Heard Loud and Clear: IRS Postpones Implementation of $600 Form 1099-K Reporting by a Year,” published in The National Taxpayer Blog. The abstract and key-points are as follows:
As a result of taxpayer confusion, lack of clear guidance, concerns about the existing backlog, and impact on the upcoming filing season, industry and stakeholders urged the IRS to postpone the implementation of the reporting requirements of the Forms 1099-K. Good news: The IRS listened, and on Friday, December 23, the IRS issued Notice 2023-10 delaying the requirement for electronic payment networks to report transactions over $600 to the IRS on a Form 1099-K, Payment Card and Third Party Network Transactions, until 2024.
- The IRS is delaying lowering the threshold for Form 1099-K reporting by a year. The $20,000 and 200 transactions thresholds remain in place through December 31, 2023.
- The rules for reporting income are not changing. Anybody receiving taxable income paid through third-party networks must still track and report their taxable income.
Posted by Melissa Zheng, Associate Editor, Wealth Strategies Journal.