Did the American Rescue Plan of 2021 contain a provision to lower reporting requirements for 1099-k income to $600?
Yes, the American Rescue Plan of 2021 did contain a provision to lower reporting requirements for 1099-K income to $600. However, it has been delayed, at least until 2023.
“Under the law, beginning January 1, 2023, a TPSO is required to report third-party network transactions paid in 2022 with any participating payee that exceeds a minimum threshold of $600 in aggregate payments, regardless of the number of transactions. TPSOs report these transactions by providing individual payee an IRS Form 1099-K, Payment Card, and Third-Party Network Transactions.”
A 1099-K is a tax form used by payment settlement entities to report payment transactions to the IRS. It is typically used for businesses that accept payments through third-party payment processors, such as PayPal, Stripe, or Square.
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