IRS delays tax reporting rule change for business payments on apps such as Venmo and PayPal
Publishing timestamp: 2023-11-21 16:07:19
Summary
The IRS has announced that 2023 will be a "transition year" for new tax reporting requirements for business payments made through apps like PayPal and Venmo, as well as e-commerce platforms like eBay, Etsy, and Poshmark. The new requirements will trigger Form 1099-K for payments as low as $600, even if they come from a single business transaction. The old limit of more than 200 transactions worth over $20,000 will remain in place for 2023, but a $5,000 limit will be implemented for tax year 2024. The $600 threshold will go into effect for tax year 2025. The IRS plans to update Form 1040 to make the reporting process easier. The announcement comes amid concerns about taxpayer confusion and the estimated number of 1099-Ks for 2023 is 44 million.
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