Adam H. Kerman <
[email protected]> wrote:
The threshold to report third-party settlements on 1099-K will not be
lowered to $600 for 2023. The threshold is over $20,000 with more than
200 transactions.
They are planning to lower the threshold to $5,000 for 2024 but no >announcement has been made.
https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-platform-payments-in-2023-plans-for-a-threshold-of-5000-for-2024-to-phase-in-implementation
https://www.irs.gov/pub/irs-drop/n-23-74.pdf
https://www.irs.gov/businesses/understanding-your-form-1099-k
https://www.irs.gov/newsroom/irs-announces-2023-form-1099-k-reporting-threshold-delay-for-third-party-platform-payments-plans-for-a-5000-threshold-in-2024-to-phase-in-implementation
There have been developments over the last two months. IRS has issued
FAQs and general guidance to payees on reporting. Certain guidance was
updated February 6, 2024, including Fact Sheet 2024-03 FAQs, which
include helpful examples and distinguish payments for card transactions
(which have never had a minimum threshold for reporting) and payments
from third party settlement organizations and payment entities.
https://www.irs.gov/pub/taxpros/fs-2024-03.pdf
There's a new continuous use Form 1099-K and instructions and
Publication 5951 IRS Form 1099-K MYTHS vs FACTS. All three have March
2024 revision dates.
The paper Form 1099-K is NCR and there's a copy for IRS to scan with
red dropout ink. Other than to see an example of the form or possibly to
issue extraneous copies that for some reason weren't filed
electronically, I cannot imagine who would use the paper form, given
that with a threshold of 10 forms to file, there is an electronic filing requirement.
Also, there are updated Web pages.
https://www.irs.gov/forms-pubs/about-form-1099-k https://www.irs.gov/businesses/what-to-do-with-form-1099-k https://www.irs.gov/businesses/understanding-your-form-1099-k https://www.irs.gov/newsroom/form-1099-k-faqs-should-my-organization-be-preparing-filing-and-furnishing-form-1099-k
https://www.irs.gov/newsroom/form-1099-k-faqs
The FAQs are broken up into several Web pages but on the PDF, it's one document.
They want all information on a 1099-K to be reported. It's not clear to
me if this is a suggestion or mandatory.
If the 1099-K was received in error and a corrected one wasn't issued,
report on Schedule 1. Part I Line 8z Other Income, report the error,
and the adjustment on Part II Line 24z Other Adjustments. Use the same
lines if a personal item was sold at a loss but the adjustment cannot
exceed the income as the loss isn't taken for tax purposes.
If there is a gain, it's reported as a short-term gain on Form 8949
which flows to Schedule D.
I was just told that the gross amount of payments received by Uber and
Lyft drivers get reported on 1099-K.
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