IRS Breaking News: 1099-K Chaos Canceled!

IRS Breaking News - 1099-K's Delayed

Hey remember that thing with the millions of new 1099-K Forms that were going to be sent out to taxpayers starting in January 2024?

The thing where everybody who used a “payment processor” to transact over $600 for the entire year of 2023 was going to receive a 1099-K? Meaning that all the “gig economy” / “side hustle” activities like Etsy, eBay, Facebook Marketplace, Venmo, CashApp, etc. were going to be “revealed” to the IRS?

You know–the thing that was going to cause massive amounts of confusion and chaos for both taxpayers and tax professionals?

IRS just canceled that thing–or, I should say, delayed that thing until next tax season.

For this tax season (tax year 2023), the “old” limits will apply. Meaning that taxpayers will only receive a 1099-K if:

  1. They processed over $20,000 in payments, and
  2. They processed more than 200 transactions.

These higher limits will drastically cut down on the number of 1099-K’s that will go out and, as such, will drastically cut down on the number of taxpayers running around like chickens with their heads cut off.

What’s more, the IRS has said they are raising the 1099-K reporting threshold for next tax season from $600 to $5,000.

So, if you’ve been stressing about how big of a mess the new 1099-K Thing is going to be, you can officially relax! 🙂

Happy Thanksgiving to you and your family!

If you like staying on top of the latest tax updates, you’ll love being a Pronto Tax School Member, since both of our Memberships include our best-selling tax update courses, which are updated multiple times per year to catch new changes without you needing to pay for another update course to update your update.

  • Existing Members can log in here and access your course materials anytime.
  • Not Yet Members can click here to join the tax changes & updates festivities for less than $100 per year, or “go big” with a Dream Team Membership if you want even more hands-on help to achieve your tax career dreams.

Quick reminder about two free webinars coming up this week:

  1. How to Achieve Your Dreams in the Tax Business — details and registration here.
  2. How to Sell Your Tax Business — details and registration here.

If you have any questions about Pronto Tax School Memberships, or if you’re an existing Member wondering how to best utilize your Membership Benefits (or maybe you’re ready to upgrade your Membership), please feel free to contact our support team directly at support@prontotaxschool.com or call us 310-422-1283.

Let's Make Sure We Direct You to the Right
Training for Your Needs!

Please click the button below for your primary tax credential.

Not sure which credential applies to your situation?  Click here to reach our support team and we'll help you decide.

Let's Make Sure We Direct You to the Right
Training for Your Needs!

Please click the button below for your primary tax credential.

Not sure which credential applies to your situation?  Click here to reach our support team and we'll help you decide.