Christmas came early (again) this year for many taxpayers and tax professionals. The IRS has announced that it would (again) delay the new $600 Form 1099-K reporting threshold for third-party settlement organizations.
Here’s what you need to know.
The IRS will treat 2023 as an additional transition year. If that sounds familiar, the same thing happened last year when the agency announced that the 2022 tax year would be considered a transition period. Third-party settlement organizations were not required to report tax year 2022 transactions on Form 1099-K to the IRS or the payee for the lower $600 threshold amount—the existing $20,000/200 transaction threshold remained in effect through year-end.
Kelly Phillips Erb | Forbes