IRS Postpones Implementation of $600 Form 1099-K Reporting by a Year

[pennpicker]

As a result of taxpayer confusion, lack of clear guidance, concerns about the existing backlog, and impact on the upcoming filing season, industry and stakeholders urged the IRS to postpone the implementation of the new reporting requirements of the Forms 1099-K. Good news: The IRS listened, and on Friday, December 23, the IRS issued Notice 2023-10 delaying the requirement for electronic payment networks to report transactions over $600 to the IRS on a Form 1099-K, Payment Card and Third Party Network Transactions, until 2024.

https://www.taxpayeradvocate.irs.gov/news/nta-blog-heard-loud-and-clear-irs-postpones-implementation...

[pburn]

Yes. This was announced last Thursday or Friday, and there have been more than a dozen threads about it already. I stopped tracking them at ten:

I FEEL THIS 1099K DELAY IS A GOOD THING the entire plan is just a bad idea. 

1099 k So we missed a whole year of sales? I stopped selling do to this. So I missed out on sales. 

1099-K Delayed? Oh, I sure hope so! 

eBay needs to assure sellers NOW and make an announcement! No 1099-K forms will be issued for 2022! 

New 1099-K threshold postponed a year by IRS 

AMAZING NEWS!!!!! 1099 

IRS delays new tax-reporting rule on Venmo, PayPal payments over $600 

NO 10-99 this year. 

IRS Delays $600 Gig-Tax Rule 

[pennpicker]

Thanks. Was on vacation and received a message from our congressman this morning. Such good news!

[714ricki]

If the IRS was ready, then it would have gone into affect. The solution is simple, report your profits, sales tax collected, & all deductions. 

Good luck!

[kensgiftshop]

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@pennpicker wrote:

Thanks. Was on vacation and received a message from our congressman this morning. Such good news!

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Good news for all the tax cheats, won't make any difference for us that already claim our income.

[buyselljack2016]

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@pennpicker wrote:

Thanks. Was on vacation and received a message from our congressman this morning. Such good news!

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Why is it good news????

[dbfolks166mt]

     Given the $600 limit was codified it will be interesting to see if the IRS has the authority to issue this delay on their own or if it will take Congressional approval. It also has no impact for those states that already have their own laws established with regards to the 1099-K issuance threshold. 

[pennpicker]

Because loads of threads arrest to how much the new lower reporting thresholds were stressing folks out. I'm glad this is is now one less thing for them to worry about.

[oldskoolmadskilz]

Great news.  Hopefully they will repeat it next year.  I'm a casual+ seller and I know I could easily account for my profits being near zero, but who wants to do that.

[onefootflipper]

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@buyselljack2016 wrote:

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@pennpicker wrote:

Thanks. Was on vacation and received a message from our congressman this morning. Such good news!

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Why is it good news????

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Because something like 90+ percent of sellers who aren't issued a 1099 report nothing on their taxes. I am sure if you could view the IRS data on ebay sellers you would see that there is a tiny smattering of them under $20K, clustered in states with lower reporting requirements and all starting at exactly those requirements and then suddenly a whole bunch starting at exactly $20,000.

I have never once talked to another seller in real life who said they reported income when they didn't have a 1099. Talked to a whole lot of them that avoided it like the plague though with multiple venues and an account in every person's name in the house.

[tdrake]

.

[oldskoolmadskilz]

They were ready.  the system for 1099s has been around for a long time.  They're just being nice.  And trying to keep the staffing on their help lines low.  Probably more the latter.

[oldskoolmadskilz]

Well that's true, but it really impacts the casual seller.  I sold a little over $2,000 last year.  If I added up all the costs for those items, ebay fees and shipping, it would be near zero.  Now I don't have to.

[pburn]

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@pennpicker wrote:

Thanks. Was on vacation and received a message from our congressman this morning. Such good news!

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@pennpicker 

Why is that good news? Are you an entity responsible for issuing Forms 1099-K to individuals? Those are the only beneficiaries of this policy change--entities like eBay, Etsy, etc.

Everything is the same for individual eBay sellers. All income must be reported; however, tax liability will depend on whether one deducts expenses and whether one reports a profit or a loss, etc.

[pennpicker]

Lotta unhappiness for being in the midst of the holidays. Was hoping for good cheer and not to get folks worked up so I'll delete this as it sees to be a sore spot for a few of you.

Happy New Year!!!!!!