IRS Delays New $600 Form 1099-K Reporting Threshold Until 2024

The IRS has announced a delay in releasing the $600 Form 1099-K reporting threshold for third-party settlement organizations. Calendar year 2023 will now be considered a transition year and third parties (including payment apps and online marketplaces) won’t be required to report transactions unless a taxpayer receives more than $20,000 and has more than 200 transactions in 2023.

In addition to delaying the release of the new form until 2024, the IRS said it plans to boost the reporting threshold to $5,000. It decided on the delay after an outcry from taxpayers, tax advisors, and payment processors complaining that releasing the new form in 2023 would lead to confusion and disruption.

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