12 Dec 2023
I Want to See Your Taxable Income, But Can’t: TPSO Reporting Change Delayed (again)
The American Rescue Plan Act of 2021 (also called the COVID-19 Stimulus Package), Pub. L. No. 117-2, raised the de minimis threshold for Form 1099-K reporting on third party settlement organizations (TPSOs), like PayPal and Venmo, under I.R.C. § 6050W(e), from amounts in excess of $20,000 on 200 or more transactions to any payments made to a participating payee that exceed a $600 threshold, regardless of the number of transactions. I.R.S. Notice 2023-10 had delayed application of the reduced reporting amount for the 2022 tax year. Now, I.R.S. Notice 2023-74 provides that for the 2023 taxable year, a TPSO once again is not required to report payments in settlement of third-party network transactions regarding a participating payee unless the amount to be reported exceeds $20,000—and the number of such transactions with that participating payee exceeds 200.
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