Reminder: IRS Delayed $600 Reporting Threshold

Clients should be reminded that the IRS has delayed the $600 reporting threshold for another year, given the administrative issues encountered in implementing the new rule. Prior to the delay, if a client received third party payments in tax year 2022 for goods and services that exceeded $600, they were set to receive Form 1099-K, Payment Card and Third Party Network Transactions, by January 31, 2023. In prior years (and for 2022 as well), Form 1099-K should only be issued for third party networks transactions only if the total number of transactions exceeded 200 for the year and the aggregate amount of these transactions exceeded $20,000. Clients who have been asked to provide their Social Security numbers by vendors like eBay and Paypal. If clients receive the forms for the 2022 tax year, they should be reminded that the new rules will not be implemented for another year. For more information on these rules, visit Tax Facts Online. : Q 8724. Note: Q8724 is updated.