1099 Compliance News and Updates
Stay informed with the latest updates on 1099 regulations and IRS announcements.
IRS provides transition relief for third-party settlement organizations; Form 1099-K threshold is $5,000 for calendar year 2024
November 26, 2024
The IRS has announced that the Form 1099-K reporting threshold for third-party settlement organizations will be $5,000 for calendar year 2024.
House Passes Bill to Raise 1099-K Threshold
June 13, 2024
The House Ways and Means Committee advances legislation to restore the $20,000 and 200 transaction threshold for third-party payments.
What taxpayers should do if they received a Form 1099-K in 2024
March 7, 2024
For the 2023 tax year, the IRS delayed the $600 reporting threshold for Form 1099-K, so the previous thresholds of over $20,000 in payments and more than 200 transactions remained in place. However, taxpayers must still report all income, including cash, property, and payments received through payment apps or marketplaces, even if they didn’t receive a Form 1099-K. The form should not include personal payments like gifts or reimbursements. Taxpayers should check the accuracy of the form, report any deductible expenses, and if they sold personal items at a loss, they can offset the payment on their tax return. If a Form 1099-K was issued in error, taxpayers should contact the issuer for a corrected form. It’s important to file taxes even if the corrected form is not received.
IRS revises and updates frequently asked questions about Form 1099-K
March 1, 2024
The IRS has updated its frequently asked questions (FAQs) about Form 1099-K, Payment Card and Third Party Network Transactions, to provide additional information about the reporting requirements for third-party payment processors.
IRS Extends 1099-K Reporting Threshold Delay
February 9, 2023
The IRS announced another delay for the new $600 reporting threshold on Form 1099-K, with a temporary increase to $5,000 for 2024.
American Rescue Plan Act Impacts 1099-K Filers
March 11, 2021
The American Rescue Plan Act lowered the reporting threshold to $600 for Form 1099-K, affecting millions of small businesses and freelancers.
IRS Faces Criticism Over Destruction of 30 Million 1099 Forms
March 2021
In an attempt to reduce backlogs, the IRS destroyed millions of paper-filed information returns, raising concerns about tax compliance and accountability.