The IRS has issued Fact Sheet 2024-3, which contains revised frequently asked questions (FAQs) for Form 1099-K, Payment Card and Third-Party Network Transactions (IR 2024-33, 02/06/2024).
The revised FAQs provide additional information for taxpayers and more clarity for industry and who should issue Forms 1099-K.
Following feedback from taxpayers, tax professionals and payment processors, late last year the IRS decided to delay the new $600 Form 1099-K reporting threshold for third-party settlement organizations for calendar year 2023.
As a result, Form 1099-K reporting will not be required unless the taxpayer meets the old reporting threshold (over $20,000 and more than 200 transactions) in 2023.
Note. Taxpayers may still receive a Form 1099-K for lesser amounts and fewer transactions.
The revised FAQs contain substantial changes within each section:
- General Information
- What to Do If You Receive a Form 1099-K
- Common Situations
- Third-Party Filers of Form 1099-K
- Should My Organization Be Preparing, Filing and Furnishing Form 1099-K?
For more information on Form 1099-K, see Payroll Guide ¶4264.
Get all the latest tax, accounting, audit, and corporate finance news with Checkpoint Edge. Sign up for a free 7-day trial today.
