In an effort to provide more resources for taxpayers during this filing season, the Inter-
nal Revenue Service has revised frequently asked questions (FAQs) for Form 1099-K,
Payment Card and Third Party Network Transactions, in Fact Sheet 2024-03. To view this fact
sheet, go to: https://www.irs.gov/pub/taxpros/fs-2024-03.pdf
The revised FAQs provide more general information for taxpayers, including common
situations, along with more clarity for industry and what organizations should send
Forms 1099-K. The FAQs are in addition to a recently updated Understanding your Form
1099-K on IRS.gov page and other communications resources.
Following feedback from taxpayers, tax professionals and payment processors and to re-
duce taxpayer confusion, the IRS announced on November 21, 2023 in Notice 2023-74 to
delay the new $600 Form 1099-K reporting threshold for third party settlement organiza-
tions for calendar year 2023. The IRS also said it plans to announce a $5,000 threshold for
tax year 2024.
As the IRS continues to work to implement the new law, the agency is treating 2023 as
an additional transition year, which applies to taxes filed this year. As a result, reporting
will not be required unless the taxpayer receives over $20,000 and has more than 200
transactions in 2023, although taxpayers may still receive a form for amounts less than
the required reporting amount.
The updates to the FAQs contain substantial changes within each section:
• General Information
• What to Do If You Receive a Form 1099-K
• Common Situations
• Third Party Filers of Form 1099-K
• Should My Organization Be Preparing, Filing and Furnishing Form 1099-K?
News
Source: The Tax Book