1099 K: the new Payment Card and Third Party Network Transactions are now reported

If you as a taxpayer or business owner have received Form 1099-K, it is because:

• You received payments related to your activities in the gig economy (e.g. run errands or complete tasks, drive a car for booked rides or deliveries, rent out property or part of said property, rent equipment, sell goods online, provide creative or professional services, provide other temporary, on-demand or freelance work).

• You sold personal items with a loss or a gain.

• You received the form by mistake or with incorrect information (contact the issuer immediately to get this corrected).

If you are in business small or big, please understand the reporting requirements:

You should receive Form 1099-K by January 31 if, in the prior calendar year, you received payments:

• $600 rule passed in 2021 – In early 2021, a law was passed dropping the 1099-K requirements for 2022 from $20,000 (and 200 transactions) to $600 from any one platform. This law is meant to apply to payments for goods and services but could have included personal payments from apps such as Venmo, Paypal, Etsy, and Ticketmaster, to name a few.

• $600 rule delayed on Dec. 2022 – On Dec. 23, the IRS announced that the new $600 rule would be delayed and that the previous rules will apply for 2022 returns. You should expect a 1099-K form if you had $20,000 or more in payments or 200 or more transactions from any one platform related to goods or services.