The IRS has revised its frequently asked questions (FAQs) for Form 1099-K, Payment Card and Third Party Network Transactions. The FAQ Fact Sheet, FS-2024-03, released this month provides substantial updates to nearly 50 questions.

The IRS announced last November in Notice 2023-74 that it would again delay the new $600 Form 1099-K reporting threshold for third party settlement organizations for calendar year 2023. Following tax community concerns and industry feedback, the IRS is treating 2023 as an additional transition year, which applies to taxes filed this year. Thus, reporting is not required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023, which was the law before the lowered threshold amount was enacted under the American Rescue Plan Act of 2021 (ARPA) (P.L. 117-2).  

IRS Commissioner Danny Werfel is expected to face tough questions about the IRS’s authority to delay the reporting threshold during today’s House Ways and Means Committee hearing. Keep an eye out for more details in our Capitol Hill Connection.