So many misconceptions. Then you add in all the other caveats.
The limits or standards for the issuance of a Form 1099-K -- $20,000 minimum with/in a minimum of 200 transactions --
are not eBay's limits, in the sense that eBay did not set those limits.
Those limits or standards are set by the Internal Revenue Service (IRS).
eBay is just one of thousands and thousands of "payers" who are required to prepare and issue 1099-Ks to their "payees" who meet those minimum limits.
Those limits can only be set by the Federal Government through formal legislation. The IRS may have input but it cannot itself set the limit. Those limits can also be set by State governments through formal legislation, which has happened in a number of states, some well before the Federal legislation was passed.
The American Rescue Plan of 2021 (ARP) was written to include issuance of 1099-Ks once the minimum transaction dollar amount reached $600.00, with no minimum number of transactions required, starting with tax year 2022.
HOWEVER: For tax year 2022, the IRS came out with final rules for issuance of Forms 1099-K on or around December 23, 2022, reverting to the previous limits of $20,000 in 200 transactions. That was only eight (8) days before the end of the year, which I imagine sent lots of programmers into small freak-outs to make sure their systems were set to filter the correct dollar amount and number of transactions onto their 1099-K Forms.
For tax year 2023, the IRS issued a very similar set of final rules late in November of 2023. As a result, eBay and other payers were still required to prepare 1099-Ks for 2023 for their payees who received payments of minimum $20,000 in a minimum of 200 transactions.
A lot of sellers, despite the delay in 2022 and 2023 still received 1099-K's even though they were well below the Federal level. Do not be surprised if additional states begin to pass their own legislation setting 1099-K issuance limits. I would think California would be high on that potential list given the budget deficit problems they are facing.
That November 2023 announcement, if I recall correctly, included a projection that, for 2024, the minimum dollar amount for a 1099-K would be set at $5,000 (still more than $600.00). However, since the IRS wasn't able to publish a final decision on minimums for 1099-K reporting for 2022 and 2023 until December and November of those years, respectively, I for one would not be surprised to see another late-in-the-year announcement from the IRS that finalizes the dollar minimum for 2024.
Added to the already complex issues with regards to this mess remember we are also in an election year and things could change considerably depending on who is elected president and which party controls the House and Senate after the election.
Personally it makes little difference to me what the Fed does I am in Virginia and I don't see them changing the current 1099-K issuance threshold it is simply generating too much additional income tax revenue.
Still addressing the OP, dacoop1, as many other people have posted, these limits only affect the point at which you get a Form 1099-K from eBay.
