Taxes
IRS Updates FAQs on Form 1099-K
The IRS is treating calendar-year 2022 as a transition year for the reduced reporting threshold of more than $600.
Dec. 28, 2022
The IRS said on Wednesday that it has updated its frequently asked questions for Form 1099-K, Payment Card and Third-Party Network Transactions, in fact sheet FS-2022-41.
The updated fact sheet comes less than a week after the IRS announced a delay in reporting thresholds for third-party settlement organizations that was set to take effect for the upcoming tax-filing season.
The IRS is treating calendar-year 2022 as a transition year for the reduced reporting threshold of more than $600. For calendar-year 2022, third-party settlement organizations that issue 1099-Ks are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions.
The fact sheet contains FAQs in five categories:
- General
- Definitions
- Individuals
- Reporting
- Filing Form 1099-K
You can download the updated 1099-K fact sheet here.