12/30/2022

IRS Delays Implementing the 1099-K $600 Reporting Threshold Until 2023

Many tax professionals are relieved by this decision

Tax pros, third-party settlement organizations, e-commerce platforms (including eBay, PayPal, Etsy, CashApp and Venmo), and individuals and small businesses that use those platforms to sell their products and services celebrated today. The Internal Revenue Service (IRS) announced a delay in the new 1099-K reporting threshold enacted by Congress as part of the American Rescue Plan of 2021 (ARPA).

As part of the act, the 1099-K reporting threshold was reduced from $20,000 to $600. This change was originally scheduled to take effect in 2022 and would have affected platforms, businesses, and individuals this coming tax season.

In what is already expected to be a challenging tax season, this is a joyous gift from the IRS in the midst of the Holiday season!

Please select this link to read the complete article from Wolters Kluwer.