1099-K Reporting Requirements

New Third-Party Network Transactions (1099-K) Reporting Requirements

• Beginning with tax year 2024, individuals who receive $5,000 or more through a third party network transaction will receive Form 1099-K

• This includes apps such as Venmo, Uber, Lyft, Cash App, 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 services

• 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 in 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