Q&A of the Week November 29, 2023

Question

Can you please explain the IRS delay of Form 1099-K reporting for tax year 2023?

Answer

The IRS announced a delay of the Form 1099-K reporting for tax year 2023, which is now considered a "transition year."

For tax year 2023, reporting is required for taxpayers who receive over $20,000 AND have more than 200 transactions.

For tax year 2024, there will be a $5,000 threshold.

With these changes, the IRS hopes to reduce confusion and provide easier reporting requirements.

If you have questions about Form 1099-K or anything else related to filing your taxes, it is always best to talk with a tax professional.