In a surprise move, the IRS announced third-party settlement organizations won’t be required to report much lower tax year 2022 transactions on Form 1099-Ks to the IRS or the payees. The lower $600 threshold amount was enacted as part of the American Rescue Plan of 2021 and had been scheduled to kick in for the 2022 tax year. Instead, the reporting of transactions in excess of $600 will now apply only to transactions that occur AFTER calendar year 2022. The 1099-K reporting threshold of $20,000 in payments from over 200 transactions will remain in effect for payments made in 2022. (Notice 2023-10)
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