Following feedback from the tax community, the IRS announced a delay of the new $600 Form 1099-K reporting threshold for third-party settlement organizations for calendar year 2023.
Given the complexity of the new provision, the IRS is planning for a threshold of $5,000 for tax year 2024 as part of a phase-in to implement the $600 reporting threshold enacted under the American Rescue Plan.
The IRS is also looking to make updates to Form 1040 and related schedules for 2024 that would make the reporting process easier for taxpayers. Read more.