Online sellers--IRS Delays Reporting Requirement

The IRS is delaying implementation of a rule that required online payment providers such as PayPal, Venmo, and Cash App to file 1099-K forms with the Internal Revenue Service on anyone who received over $600 in payments for goods or services.

For 2023, the rule is that forms 1099-K must be filed if more than 200 transactions that exceed $20,000 in payments are generated. This delay in implementing the new rule will result in an estimated 40 million fewer 1099-K forms being filed.

The IRS will increase the $600 reporting requirement to $5,000 and implement the new rule for year 2024.

Gene M. Bowman

Attorney, Bowman Law Firm, LLC Huntsville, Alabama