team@coachjanellecpa.com

Mon - Fri: 9:00am - 5:00pm

CUSTOM JAVASCRIPT / HTML

New 1099-K Filing Rules Delayed Again

Written by Coach Janelle CPA on January 27, 2024

Do you sell goods or services and receive payment through a third-party settlement organization (TPSO)? If so, you must know the IRS’s new Form 1099-K reporting rules.

TPSOs include:

1, payment apps such as PayPal, CashApp, and Venmo;

2. online auction or marketplace services such as eBay and Amazon;

3. gig economy platforms such as Uber and Airbnb;

4. some cryptocurrency processors such as BitPay;

5. craft or maker marketplaces like Etsy;

6. ticket exchange or resale sites like Ticketmaster; and

7. some crowdfunding platform


For over a decade, TPSOs filed IRS Form 1099-K, Payment Card and Third Party Network Transactions, reporting certain payments the TPSOs processed for goods and services.

But a TPSO had to file Form 1099-K only if the recipient had

1. gross annual earnings over $20,000, and

2. more than 200 transactions in the calendar year. 

With these thresholds, only frequent users of TPSOs exceeded both thresholds and had their payment information reported to the IRS. If you never received a 1099-K from a TPSO that processed payments on your behalf, this is why.

That is changing. Congress drastically reduced the 1099-K filing thresholds when it enacted the American Rescue Plan Act of 2021 to require TPSOs to file Form 1099-K for any recipient who is paid more than $600 during the year with no minimum transaction requirement.

The new 1099-K filing rules were supposed to go into effect for the 2022 tax year.

But the IRS delayed them until 2023. Now, the IRS has delayed them yet again, announcing that the old rules ($20,000/200 transactions) remain in place for 2023.

For the 2024 tax year, the IRS is replacing the $20,000/200 transaction threshold with a $5,000 threshold and no minimum transaction requirement.

For the 2025 tax year and later, the IRS will apply the $600 threshold, again with no minimum transaction requirement.

Why all the delays? Because the IRS fears that TPSOs will mistakenly file many of the expected 44 million 1099-Ks. For example, TPSOs might mistakenly file 1099-Ks for personal payments from family and friends.

About Coach Janelle CPA

My passion is to help 6 & 7- figure+ earners see their financial possibilities through financial literacy and strategy. 

I want to help you save on taxes so you can keep more of your money to live the life you dream of and have worked for NOW, and build wealth and equity for the next generation.

Sign Up To Our Weekly Newsletter

Get the latest tax planning tips content delivered straight to your inbox.

 All Your Information is Protected When You Sign Up

Check Out Some Of Our Latest Blog Post


2023 Last-Minute Vehicle Purchases to Save on Taxes

Written by Coach Janelle CPA on December 13, 2023

Here’s an easy question: Do you need more 2023 tax deductions? If the answer is yes, continue reading. Next easy question: do you need a replacement business vehicle? If so, you can simultaneously solve or mitigate the first problem (needing more deductions) and the second problem...

Last-Minute Year-End Retirement Deductions 

Written by Coach Janelle CPA on December 8, 2023

The clock continues to tick. Your retirement is one year closer. You have time before December 31 to take steps that will help you fund the retirement you desire. Here are five things to consider. 1. Establish Your 2023 Retirement Plan. First, a question: do you have your (or your corporation’s) retirement plan in place? If not, and if you have some cash...

Last-Minute Year-End Medical Plan Strategies

Written by Coach Janelle CPA on December 6, 2023

All small-business owners with one to 49 employees should have a medical plan for their business. Sure, it’s true that with 49 or fewer employees, the tax law does not require you to have a plan, but you should. When you have 49 or fewer employees, most medical plan tax rules are straightforward...

Last-Minute Year-End Tax Strategies for Your Stock Portfolio  

Written by Coach Janelle CPA on December 2, 2023

When you take advantage of the tax code’s offset game, your stock market portfolio can represent a little gold mine of opportunities to reduce your 2023 income taxes. The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies...

Last-Minute Year-End General Business Income Tax Deductions

Written by Coach Janelle CPA on November 25, 2023

The purpose of this article is to reveal how you can get the IRS to owe you money.
Of course, the IRS will not likely cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes...

Tax-Free Rental Income with the Augusta Rule

Written by Coach Janelle CPA on November 1, 2023

The Augusta rule gets its name from the Masters Golf Tournament, where some members and others who live in the area receive tax-free rent by renting their homes for a week or two. You don’t have to live in Augusta to benefit from this rule...

Deduct Travel by Car, Train, Plane, or Boat

Written by Coach Janelle CPA on October 25, 2023

Say you are going to travel from your home in Washington, D.C., to San Francisco. Will the tax law allow you to travel to San Francisco by car, train, plane, or boat, your choice? Answer. Yes. But special rules apply. You need to know these rules to guarantee your deductions...

Donating Clothing to Goodwill and the Salvation Army

Written by Coach Janelle CPA on October 18, 2023

As the year comes to a close, many taxpayers consider making clothing and household item donations both to give back and to optimize their tax deductions. Recent cases, like the one involving Duncan Bass, underscore the significance of understanding and adhering to IRS regulations related to these contributions...

Act Now! Get Your Safe-Harbor Expensing in Place

Written by Coach Janelle CPA on September 27, 2023

For 2024, you can elect the de minimis safe harbor to expense assets costing $2,500 or less ($5,000 with audited financial statements or similar) The term “safe harbor” means that the IRS will accept your expensing of the qualified assets if you properly abided by the safe harbor rules...

HSAs for Business Owners

Written by Coach Janelle CPA on September 2, 2023

When enacted, the Affordable Care Act (ACA) eliminated most small-business health plans that reimbursed individually purchased health insurance. Consequently, many small business owners with fewer than 50 employees chose health savings accounts (HSAs) or opted to provide no health coverage at all....

Update on State Pass-Through Entity Taxes Beating the SALT

Written by Coach Janelle CPA on September 6, 2023

Here are some critical updates on the pass-through entity tax (PTET), which has recently become the rule in most states rather than the exception. The PTET enables owners of pass-through businesses, such as S corporations and multi-member LLCs, to navigate around the $10,000 annual limit on state and local taxes (SALT).

ICHRA Unleashed: Transforming Small Business Health Benefits

Written by Coach Janelle CPA on August 23, 2023

The individual coverage health reimbursement arrangement (ICHRA) allows businesses of all sizes, from large corporations to small businesses like yours, to reimburse employees for their personally purchased health insurance expenses...

The QSEHRA Health Plan

Written by Coach Janelle CPA on August 4, 2023

If you’re a small employer (fewer than 50 employees), you should consider the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) as a good way to help your employees with their medical expenses....

Share Us On Social Media

@coachjanellecpa

Follow me. Let's be friends!

@coachjanellecpa

Follow me. Let's be friends!

© 2021 Coach Janelle CPA. 
All Rights Reserved.

Follow me on socials

Sign up for our weekly newsletter

Get the latest tax planning tips content delivered straight to your inbox.

© 2021 Coach Janelle CPA. 
All Rights Reserved.

Follow me on socials

Sign up for our weekly newsletter

Get the latest tax planning tips content delivered straight to your inbox.