Issue Number: IR-2022-226
WASHINGTON — The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season.
As a result of this delay, third-party settlement organizations
will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021.
The American Rescue Plan of 2021 changed the reporting threshold for TPSOs. The new threshold for business transactions is
$600 per year; changed from the previous threshold of more than
200 transactions per year, exceeding an aggregate amount of $20,000. The law is not intended to track personal transactions such as sharing the cost of a car ride or meal, birthday or holiday gifts, or paying a family member or another for a household bill.
The IRS also noted that the existing 1099-K reporting threshold of $20,000 in payments from over 200 transactions will remain in effect.
More information about this IRS notice can be found at
https://www.irs.gov/news...t-platforms-forms-1099-k How to file Form 1099-Khttps://www.halfpricesof...rint-tax-form-1099-k.asp