The IRS on Tuesday announced it is delaying the implementation of a 2021 law that requires payment platforms such as PayPal, Venmo, or other Cash payment APP to send tax form 1099-Ks to anyone who received more than $600 in the current tax year.
It is the second time the IRS has pushed this new regulation. On Tuesday, the IRS said it will push the regulation back another year "to reduce taxpayer confusion" after hearing comments and complaints from taxpayers and payment processors.
Also, the IRS said that starting in tax year of 2024, it will increase the basic reporting threshold from $600 to $5,000 as it phases in the new rule.
What does it mean to taxpayers if this regulation implemented?
Taxpayers who reach the threshold will receive 1099K. However, it does not mean you owe any taxes if these payments were received from friends and families unless these were associated with business activities.
Comentários