The IRS considers the calendar year 2022 to be a transition year for the lower reporting threshold of more than $600.
The IRS announced on Wednesday that fact sheet FS-2022-41 has been updated with frequently asked questions for Form 1099-K, Payment Card, and Third-Party Network Transactions.
The revised fact sheet was released less than a week after the Internal Revenue Service (IRS) announced a delay in the reporting thresholds for third-party settlement organizations, which were supposed to go into effect for the upcoming tax filing season.
The reduced reporting threshold of more than $600 is being implemented beginning in the calendar year 2022, according to the IRS. The only transactions that third-party settlement companies issuing 1099-Ks are required to report for the calendar year 2022 are those with gross payments greater than $20,000 and more than 200 transactions.
The FAQs on the fact sheet are divided into five categories:
- Filing Form 1099-K
You can find the most recent 1099-K fact sheet here.
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