In Dec. 2022, the IRS agreed with critics and announced a delay in implementing a $600 de minimis threshold (from a $20,000 threshold) for reporting third-party settlement organization transactions. The IRS stated there would be a one-year “orderly transition” period instead. However, taxpayers that performed backup withholding (generally for payees without taxpayer ID numbers) in 2022 must still file Form 1099-K. They also must provide a copy to the payees if the total payments and withholding exceed $600. National Taxpayer Advocate Erin M. Collins has said that during the transition period the IRS will develop guidance and share information to assist taxpayers.
Our Blog 