By Staff Reporters
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IRS
The IRS just noted that there are no changes made to the taxability of income but only in the reporting rules for Form 1099-K. Taxpayers are still required to report all income on their tax return unless it is excluded by law. This is whether they receive a Form 1099-NEC, Nonemployee Compensation; Form 1099-K; or any other information return.
Previously businesses would generally receive a 1099-K tax form only when their gross payments exceeded $20,000 for the year and the business conducted at least 200 transactions.
According to the new 1099-K rule, the gross payments threshold has been lowered to just over $600 for the year with the transactions threshold no longer applying. Now a single transaction exceeding $600 can trigger a 1099-K. This includes transactions through credit cards, debit cards, banks, PayPal, Uber, Lyft, and other third-party payment settlement entities.
The 1099-K form includes information about the payment processor and the company receiving payments, and a monthly breakdown of total payments, among other information.
According to the IRS, the lower information reporting threshold and the summary of income on Form 1099-K will make it easier for taxpayers to track the amounts received.
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COMMENTS APPRECIATED
Thank You
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Filed under: "Ask-an-Advisor", Accounting, Investing, Taxation | Tagged: Accounting, FORM 1099-k, IRS, New 1099-K Reporting Rule, tax |
NOPE
IRS pauses rule requiring people to report PayPal, Venmo transactions over $600
https://www.msn.com/en-us/money/personalfinance/irs-pauses-rule-requiring-people-to-report-paypal-venmo-transactions-over-600-here-s-what-went-wrong/ar-AA15C6g0?cvid=f91a247a62ec40fa881fcb2914def427
Ken
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