IRS Delays Implementation of Lower $600 1099-K Reporting threshold for 2022

The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season.

As a result of this delay, third-party settlement organizations are not required to report tax year 2022 transactions on a Form 1099-K to the IRS or the recipient for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021.

The IRS released guidance today outlining that calendar year 2022 will be a transition period for implementation of the lowered threshold reporting for third-party settlement organizations (TPSOs) including Venmo, PayPal and CashApp that would have generated Form 1099-Ks for taxpayers.