IRS Delays Implementation of $600 1099-K Reporting Requirement

The IRS has announced third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021. Instead, the reporting of transactions in excess of $600 will now apply only to transactions that occur after calendar year 2022. The existing 1099-K reporting threshold of $20,000 in payments from over 200 transactions remains in effect for payments made in 2022. (Notice 2022-10; IR 2022-226)