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UPDATE: IRS Postpones New Payment App Reporting Thresholds to 2025

In October 2023, I shared insights about the changing reporting requirements for third-party payment networks such as PayPal, Venmo, Apple Pay, and Stripe. At that time, it was understood that beginning in 2023, these platforms would be required to file Form 1099-K with the IRS, and provide a copy to the taxpayer, for transactions totaling more than $600 annually.

However, there’s a significant update to this information. The IRS has recently announced a change in course, reverting to the original reporting thresholds. The implementation of the new $600 threshold has been postponed until January 2025.

This means for the time being, the previous limits remain in effect. Third-party payment networks will continue to report transactions on Form 1099-K only when the total amount of payments exceeds $20,000, and the total number of transactions exceeds 200 within a calendar year.

It’s important to note that not all payments received through these networks are taxable. Personal gifts, reimbursements, and similar non-taxable transactions should not be reported as income.

We apologize for any confusion the earlier article may have caused and are committed to providing you with the most accurate and timely information.

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