The IRS has delayed the implementation of the new rules for reporting income received from apps like Venmo, PayPal, Cash App, etc. The new rules create an undue burden on taxpayers and the IRS, which is still wading through a backlog of returns.
Specifically, the IRS released Notice 2023-10, which announces the delay in implementation of the $600 lower requirement for issuing Form 1099-K until the 2023 filing year (meaning these forms will need to be filed in January 2024).
The IRS is considering calendar year 2022 as a transition period for implementation of the lowered threshold reporting for third-party settlement organizations (TPSOs) including Venmo, PayPal and Cash App that would have generated Form 1099-Ks for taxpayers.
The IRS also noted that the existing 1099-K reporting threshold of $20,000 in payments from over 200 transactions will remain in effect.