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Form 1099-K $600 Reporting Threshold Delayed by IRS

Form 1099-K $600 Reporting Threshold Delayed by IRS

On December 23, 2022, the Internal Revenue Service (IRS) announced that a third-party settlement organization (TPSO) will not be penalized for failing to file, or failing to furnish, Forms 1099-K that exceed a minimum threshold of $600 in aggregate payments, irrespective of the number of transactions for the 2022 tax year. The calendar year 2022 will be considered a transition period for the implementation of the $600 threshold. The change of the rules is in response to raised concerns over the implementation timeline for TPSOs.

One caveat to this change is that a Form 1099-K must still be filed with the IRS and furnished to the recipient if backup withholding was performed in the calendar year for payees with “total payments to and withholding” exceeding $600 in the 2022 calendar year.

Review the IRS announcement and Notice 2023-10 for more details:

https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-third-party-payment-platforms-forms-1099-k

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Form 1099-K $600 Reporting Threshold Delayed by IRS

This document contains general information only and is not a substitute for accounting, tax, or any other professional advice or services. The information provided is considered accurate at the time of publishing and will not be updated with new regulation requirements.

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