{"id":2618,"date":"2023-01-25T11:08:47","date_gmt":"2023-01-25T11:08:47","guid":{"rendered":"https:\/\/www.waddytax.com\/dcaa\/?p=2618"},"modified":"2023-02-08T13:02:49","modified_gmt":"2023-02-08T13:02:49","slug":"tax-season-news-irs-revises-guidance-on-payment-platform-reporting-requirements","status":"publish","type":"post","link":"https:\/\/www.waddytax.com\/dcaa\/accounting\/tax-season-news-irs-revises-guidance-on-payment-platform-reporting-requirements\/","title":{"rendered":"Tax Season News: IRS Revises Guidance on Payment Platform Reporting Requirements"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-top:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-center fusion-flex-justify-content-center fusion-flex-content-wrap\" style=\"max-width:1310.4px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_3_5 3_5 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:60%;--awb-margin-top-large:20px;--awb-spacing-right-large:3.2%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:3.2%;--awb-width-medium:60%;--awb-order-medium:0;--awb-spacing-right-medium:3.2%;--awb-spacing-left-medium:3.2%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><p>If you&#8217;re a frequent user of payment platforms like Venmo and PayPal, you&#8217;ll be happy to know that the IRS has recently revised their guidance on reporting requirements for these platforms.<\/p>\n<p>Last year, the IRS announced that platforms like Venmo and PayPal would be required to send Form 1099-K to anyone who earned $600 or more on the platform in 2022. However, just before the holidays, the IRS reversed course and made a change to their guidance.<\/p>\n<p>Starting in 2022, payment platforms will only be required to provide 1099-Ks to those who earned at least $20,000 from 200-plus transactions on the platform. This decision was made to &#8220;help smooth the transition and ensure clarity for taxpayers, tax professionals, and industry.&#8221;<\/p>\n<p>This update is great news for everyday Americans who use payment platforms for regular transactions and were worried about confusion with the new $600 threshold. Tax professionals were also concerned about personal transactions getting caught up in the reporting requirements.<\/p>\n<p>It&#8217;s important to note that those who do not meet the $20,000-plus\/200-plus transaction threshold may no longer receive a 1099-K from the payment platforms, but they still have a legal obligation to report any taxable income.<\/p>\n<p>Some platforms may have already sent out 1099-Ks based on the previous guidance, so there may be some confusion in the coming weeks. The IRS will soon release advice for those who have received 1099-Ks but no longer meet the form threshold. Our team will be keeping a close eye on this and will keep you updated.<\/p>\n<p>If you have any questions or concerns about this change, please don&#8217;t hesitate to reach out. We&#8217;re always here to help.<\/p>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,4],"tags":[],"class_list":["post-2618","post","type-post","status-publish","format-standard","hentry","category-accounting","category-taxes"],"_links":{"self":[{"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/posts\/2618","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/comments?post=2618"}],"version-history":[{"count":5,"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/posts\/2618\/revisions"}],"predecessor-version":[{"id":3045,"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/posts\/2618\/revisions\/3045"}],"wp:attachment":[{"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/media?parent=2618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/categories?post=2618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/tags?post=2618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}