On October 24, the IRS issued a reminder to taxpayers that they may receive a Form 1099-K, Payment Card and Third-Party Network Transactions, beginning in 2023, if the taxpayer earned income in 2022 from the sale of goods and/ or providing services. (Reminder: Service providers, others may receive 1099-Ks for sales over $600 in early 2023 | Internal Revenue Service (irs.gov))
- Form 1099-K reports income from the sale of goods and/or services provided that the payment is processed using payment card transactions or third-party payment network transactions of more than $600 for the year.
- The IRS has provided guidance around the Form 1099-K, Understanding Your Form 1099-K | Internal Revenue Service (irs.gov) and FAQs (Form 1099-K Frequently Asked Questions | Internal Revenue Service (irs.gov).
Make sure to follow Comply Exchange for more industry updates and subscribe to the Comply Catch-up for a full industry round-up at the end of each month!