The IRS revised its FAQ webpage for Form 1099-K, Payment Card and Third-Party Network Transactions, in Fact Sheet 2023-06.
Over the past year, there’s been a wave of confusion around tax reporting for payment apps like Venmo and PayPal, along with e-commerce companies such as eBay, Etsy and Poshmark. In response, the IRS provided further clarification.
The 2022 threshold for Form 1099-K is still more than 200 transactions worth an aggregate above $20,000. That’s slated to change for next year when the 2023 threshold drops to $600 for even a single transaction.
If you mistakenly received a Form 1099-K or the amount was incorrect, the IRS suggests contacting the issuer directly to correct the information. Read more.