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:
- General
- Definitions
- Individuals
- Reporting
- Filing Form 1099-K
You can find the most recent 1099-K fact sheet here.
The tax laws are very complex. Our short blog articles cannot fully cover all the rules and nuances. Your specific facts may hold various opportunities and possible risks that only trained, experienced, and highly qualified tax specialists can spot. We encourage you to find such help, rather than trying to figure it out alone. Consider giving this marketplace a try by posting your project and signing up here.
If you are a licensed tax professional interested in helping others either part-time, full-time, or ad hoc, come on in! Happy to have you. Our marketplace has the full suite of tools to communicate with clients including compliance calendars, task and message management, and billing. You can also quickly connect to knowledgeable colleagues who can complement your services with the ones you do not provide. Register here.
