Delay of 1099K Lower Threshold
On Friday December 23, 2022, the IRS issued Notice 2023-10, which delays 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 2022 tax year was scheduled to be $600 for the year. The IRS has delayed this lower threshold for the 2022 year, so that the prior threshold will continue to apply for the 2022 tax year.
Therefore, for the 2022 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 2021 and earlier tax years.
The next M + O = CPE® Individual Tax Year-End Workshops are in January. If you are not already registered, register here.