Businesses must be ready to comply with new 2023 IRS rules for timely and accurate filing of Forms 1099-K, 1099-NEC, and 1099-MISC. View the IRS filing instructions for all information return filings HERE and an excellent Q&A on the filing of Form 1099-K HERE.
Following feedback from taxpayers, tax professionals and payment processors, and to reduce taxpayer confusion, the Internal Revenue Service in late November released Notice 2023-74 announcing a delay of the new $600 Form 1099-K reporting threshold for third party settlement organizations for calendar year 2023. As the IRS continues to work to implement the new law, the agency will treat 2023 as an additional transition year. This will reduce the potential confusion caused by the distribution of an estimated 44 million Forms 1099-K sent to many taxpayers who wouldn’t expect one and may not have a tax obligation. As a result, reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023