The IRS has updated its Form 1099-K FAQs.

1099-K

The IRS has updated its Form 1099-K FAQs.

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:

  1. General
  2. Definitions
  3. Individuals
  4. Reporting
  5. Filing Form 1099-K

You can find the most recent 1099-K fact sheet here.

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