The IRS has released guidance to help taxpayers understand what to do with Form 1099-K. Responding to feedback from taxpayers, tax professionals and payment processors, the agency had announced back in November, 2023 that the reporting threshold for Form 1099-K, Payment Card and Third Party Network Transactions, would remain over $20,000 in payments and over 200 transactions. The Form 1099-K provides the gross amount of payment card/third party network transactions and may include a combination of different kinds of total payments received. In addition, the IRS emphasized that, just because a payment is reported on a Form 1099-K does not mean it’s taxable; so, taxpayers should take caution in reviewing the forms and determine any deductible expenses associated with the payment they may be able to claim when they file their taxes. For more details on what to do with Form 1099-K, visit the IRS website.
FS-2024-7
