1099-K Threshold Change Delayed Again

In Notice 2023-74, the IRS has announced another delay in the implementation date of the lower filing threshold for Form 1099-K, Payment Card and Third-Party Transactions.

The threshold for filing Form 1099-K for the 2023 tax year was scheduled to be $600 for the year. The IRS has delayed this lower threshold for the 2023 tax year, so that the prior threshold will continue to apply for the 2023 tax year.

Therefore, for the 2023 tax year, third-party payment platforms will be required to file Form 1099-K for any account when more than 200 transactions are processed and the total amount of such transactions is more than $20,000 for the year. This is the same threshold that applied for the 2022 and earlier tax years.

Notice 2023-74 also announced that the IRS expects the threshold for filing Form 1099-K to be $5,000 for the 2024 tax year, instead of the $600 threshold.

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