Publisher's Synopsis
Yep, the IRS has decided to pause the implementation of Form 1099-K for 2023.
What this means is that, for 2023, the IRS is reverting to the previous threshold. Anyone earning $20,000 or more and conducting 200 or more transactions will receive a 1099-K in January 2024. This older requirement is now back in effect for 2023. If the IRS had implemented the new law, starting in January 2024, most businesses and individuals would likely have received a 1099-K. A similar delay occurred last year, but it was on December 22, 2022, just before Christmas, when the IRS quietly announced the delay of the 1099-K for 2022. Now, beginning in 2024, the threshold will be set at $5,000. This means that in 2024 if you were paid through a third party like Venmo, Paypal, Square, Cash App, or numerous others, you will receive one or more 1099-K forms in 2025. I have a strong feeling that the $5,000 threshold will remain in place for 2024 and beyond, rather than the $600 threshold that the IRS had originally intended to implement. So, let's rejoice and be happy! Sorry, but just because you might not get a 1099-K doesn't mean you don't report the money you made to the IRS! For more information directly from the IRS on Form 1099-K, visit their website. - Steph
