BrewOne Posted November 21, 2023 Report Share Posted November 21, 2023 By royal fiat? Anyway, doing what Congress should have, IRS has announced for 2023, filing requirements of 3rd party payers will be the same as 2022. And 2024 will have a $5,000 threshold for issuing a 1099-K (as reported in NY Times) 2 Quote Link to comment Share on other sites More sharing options...
Lee B Posted November 21, 2023 Report Share Posted November 21, 2023 What a mess! Quote Link to comment Share on other sites More sharing options...
Medlin Software, Dennis Posted November 21, 2023 Report Share Posted November 21, 2023 Maybe the PTB are waiting for a TY where there is not a huge concert series and the resale profit... but seriously, likely comes down to perceived profit. Maybe the cost of processing the increase in forms is not thought to be covered by increased revenue?. Or maybe even easier, not in a presidential election year. Quote Link to comment Share on other sites More sharing options...
Lee B Posted November 21, 2023 Report Share Posted November 21, 2023 The IRS probably received a lot of pressure from the entities required to submit the 1099 Ks saying they weren't ready to comply. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted November 22, 2023 Report Share Posted November 22, 2023 So help me understand this. If I pay a vendor for a business expense with a credit card, and it is over $600 but less than $10,000, I have no reporting requirements (because it was paid by CC) and the CC company will not report (because it is under their threshold). Next year, the same scenario but as long as the transactions total less than $5,000 the transactions don't get reported to the IRS. Conversely, if a business client pays me on a credit card more than $600 but less than $10,000 in 2023, I will not get a 1099NEC from the client, nor will I get a 1099K from my CC processor. In 2024 same but under $5,000 fee. Do I have this right? You think anyone is going to set their fee at $4,999 in 2024? (not like anyone would game the system to avoid income being reported). Tom Longview, TX Quote Link to comment Share on other sites More sharing options...
TexTaxToo Posted November 22, 2023 Report Share Posted November 22, 2023 22 minutes ago, BulldogTom said: Do I have this right? This has nothing to do with the requirements for issuing 1099-NEC, nor with the requirement that credit card processors report ALL credit/debit payments to merchants on a 1099-K. This is only for third party payment processors (e.g., Paypal, CashApp, Uber, AirBnB, etc), where a third party accepts a payment on behalf of someone. See the announcement here: https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-platform-payments-in-2023-plans-for-a-threshold-of-5000-for-2024-to-phase-in-implementation 1 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted November 22, 2023 Report Share Posted November 22, 2023 1 hour ago, TexTaxToo said: This has nothing to do with the requirements for issuing 1099-NEC, nor with the requirement that credit card processors report ALL credit/debit payments to merchants on a 1099-K. This is only for third party payment processors (e.g., Paypal, CashApp, Uber, AirBnB, etc), where a third party accepts a payment on behalf of someone. See the announcement here: https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-platform-payments-in-2023-plans-for-a-threshold-of-5000-for-2024-to-phase-in-implementation Thanks Tom Longview, TX Quote Link to comment Share on other sites More sharing options...
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