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Third-Party Network Transactions (1099-K) Reporting Requirements
The IRS has delayed the 1099-K reporting requirements for tax year 2022 and 2023 (see IR-2023-221)
Beginning with tax year 20232024, individuals who receive $600 $5,000 or more through a third party network transaction will receive Form 1099-K (this was intended to be 2022 but IRS has delayed to tax year 2023)
This includes apps such as Venmo, Uber, Lyft, Cash App, Zelle, PayPal, E-bay, etc.
Taxpayers must report Form 1099-K on their tax return as income if the funds were received for the sale of goods and servicesIf amounts on
2024 will be treated as a “phase-in year” this means that following 2025 we can anticipate the $600 threshold to take effect
Many taxpayers may still receive Form 1099-K are incorrect the taxpayer should contact the issuerin 2023 even though the IRS has delayed the reporting for the third party transactions, keep in mind taxpayers should be reporting all income for goods and services, regardless of the IRS reporting requirements
If taxpayer receives an incorrect 1099-K, they must contact the issuer, not the IRS
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