So -- in response to an earlier post today, I did a brief Google search and found this very recent statement, dated November 26, 2024. I just took a look at eBay's Seller News in these community forums and there's no mention of this publication. Thought I'd share . . . . .
The title (with emphasis added) is: IRS provides transition relief for third-party settlement organizations; Form 1099-K threshold is $5,000 for calendar year 2024
The text is as follows:
(START QUOTE)
IR-2024-299, Nov. 26, 2024
WASHINGTON — The Internal Revenue Service today issued Notice 2024-85 PDF providing transition relief for third-party settlement organizations (TPSOs), also known as payment apps and online marketplaces, regarding transactions during calendar years 2024 and 2025.
Under the guidance issued today, TPSOs will be required to report transactions when the amount of total payments for those transactions is more than $5,000 in 2024; more than $2,500 in 2025; and more than $600 in calendar year 2026 and after.
Notice 2024-85 also announces for calendar year 2024, that the IRS will not assert penalties under section 6651 or 6656 for a TPSO’s failure to withhold and pay backup withholding tax during the calendar year.
TPSOs that have performed backup withholding for a payee during calendar year 2024 must file a Form 945 and a Form 1099-K with the IRS and furnish a copy to the payee.
For calendar year 2025 and after, the IRS will assert penalties under section 6651 or 6656 for a TPSO’s failure to withhold and pay backup withholding tax.
(END QUOTE)
That second paragraph lists the minimum sales to be reported for this year, 2024, and the next two years.
This announcement means that eBay will issue 1099-K forms to sellers who sold more than $5,000.
The IRS, however, still, as always, expects that all US tax payers will report ALL their income on their IRS 1040 tax return forms, or the appropriate version. Whether you get a form from eBay or not.
