![]() ![]() If you are unsure of how the 1099-K threshold change impacts you, we recommend reaching out to a tax professional for guidance. Be sure to be thorough in your review of the sales and ensure they match what you have in your reporting. If you are a company that uses an online platform like eBay or PayPal and would reach the new $600 threshold, the payment company would send you a 1099-K form for reporting. Altogether making their tax information incorrect. Why lower the threshold now? With the rise of the gig economy and self-employment trends, workers who earned less than $20,000 a year didn’t receive a 1099-K form from the company, and some were misreporting their income, and underreported what they made. Going forward, this new update means that you are required to file a 1099-K form and report it to the IRS and the customer if they exceed $600 a year. However, beginning in 2022, the new gross payment threshold is $600. gross payments that exceed $20,000, AND.Originally starting the antique store in Denham Springs’ Antique Village in August 2017 when he was still in high school, Dupree wanted the store to bring together home dcor, furniture and other accoutrement under one curated roof. Barely into his 20s, Rivers Dupree is already expanding his antique store, Rescued Revisions, into a new, larger Denham Springs location. in settlement of third-party payment network transactions above the minimum reporting thresholds of – First Look: Rescued Revisions antique shop moves into a larger Denham Springs location.from payment card transactions (debit, credit or stored-value cards), and/or.Prior to this new change, you will have received Form 1099-K from a credit card/payment company if in the previous calendar year you received payments: ![]() The IRS has announced a new gross payment threshold as part of their reporting requirements. So if you have accepted a credit card payment online, you will likely end up with a 1099-K form that gives a synopsis of all your sales with each of the payment card companies. And the seller also receives a copy of that form for their records as well. The credit card companies give the IRS a 1099-K form that details all their transactions with an online seller for tax purposes. This form requires payment card companies, such as Visa or PayPal, to report payment transactions they have processed on behalf of a retailer. Per the IRS, “Form 1099-K, Payment Card and Third Party Network Transactions, is an IRS information return used to report certain payment transactions to improve voluntary tax compliance.” Essentially, this form came about back in 2008 as a way to ensure online retailers are reporting the appropriate amount of sales for tax purposes. This threshold change will become effective in 2022. This threshold change comes as a result of the American Rescue Plan Act that was signed into law on March 11, 2021. This brought a few updates to the 1099-K reporting, notably, a lower threshold that will have a big impact on sellers. Starting in 2021, the IRS is making some changes to bring efficiency and increased accuracy to its reporting and compliance processes. IRS brings major changes to 1099-K Reporting for 2022 ![]()
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