Further Delay of Implementation of $600 Reporting Threshold for Forms 1099-K; $5000 Threshold for 2024 to Phase in Implementation

Summary

The IRS released an advance version of Notice 2023-74 announcing that calendar year 2023 will be regarded as a further transition period for purposes of IRS enforcement and administration with respect to the lowering, under the American Rescue Plan Act of 2021, of the de minimis threshold for reporting on third party settlement organizations (TPSOs) under section 6050W(e) on Form 1099-K, from amounts in excess of $20,000 on 200 or more transactions to any payments made to a participating payee that exceed a $600 threshold, regardless of the number of transactions. (Also see I.R.S. Notice 2023-10 for treatment of the 2022 reporting year).