Pham-Kar Services

Happy Holidays to all our valued clients and PHAMily! 🎄 As we reflect on this year, we’re grateful for your trust and partnership. Here’s to a bright and prosperous 2025!

The Internal Revenue Service released the announcement on November 21,2023 that they are making 2023 another transition year to implement the new 1099-K reporting requirements under the American Rescue Plan.

The Internal Revenue Service delayed the new $600 Form 1099-K reporting threshold requirement for third-party payment organizations for tax year 2023.

This means that the previous reporting thresholds will remain in place for 2023 and prior years. Payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions.

For tax year 2024, the IRS plans to phase in a threshold of $5,000 to phase in new reporting requirements.

It's important to note that the threshold does not change the actual tax law to report all received payments for selling goods or services. All payments received, no matter the amount, must be reported whether a Form 1099-K is received or not.



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

The Internal Revenue Service released the announcement on November 21,2023 that they are making 2023 another transition year to implement the new 1099-K reporting requirements under the American Rescue Plan.

The Internal Revenue Service delayed the new $600 Form 1099-K reporting threshold requirement for third party payment organizations for tax year 2023.

This means that the previous reporting thresholds will remain in place for 2023 and prior years. Payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions.

For tax year 2024, the IRS plans to phase in a threshold of $5,000 to phase in new reporting requirements.

It's important to note that the threshold does not change the actual tax law to report all received payments for selling goods or services. All payments received, no matter the amount, must be reported whether a Form 1099-K is received or not.



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