The IRS released Notice 2023-10, see the link below, announcing delaying implementation of the new rules for third-party settlement organizations (TPSOs) like Venmo, PayPal, Zelle, CashApp, ect., that would have generated Form 1099-Ks for taxpayers. This means the lower threshold of $600 will delayed until the 2023 filing year (meaning Form 1099k will need to be filed in January 2024). The IRS considers calendar year 2022 as a transition period for implementation of the lowered threshold reporting for third-party settlement organizations (TPSOs). This means the existing 1099-K reporting threshold of $20,000 in payments from over 200 transactions will remain in effect.
On of the reasons cited for the delayed implementation is due to the burden it would place on both Taxpayers and the IRS. The IRS is still wading through a back log of returns.
Thanks for posting this. Iâm not sure why people were so bent out of shape about it. Income taxes were always due on the earnings received through these apps. It was only the reporting threshold that changed.
What they should have been concerned about when using the non-business version of these âThird-Party Network Transactionâ platforms is not having âSeller Protectionâ for fake chargebacks and reversals when customers claim services were not received.
Most vendors signing companies and title companies pay by check or direct deposit anyways itâs pretty rare youâre going to have a vendor pay with those other formats.
My OP was intended for all of our colleagues, some of whom have other business ventures, other than NSA, that receive payments through a third party processor. Those vendors who use Deluxe, a third party payor, may be getting a 1099K net year. Another example is most of the law firms I work for, pay through my PayPal portal.
