23/12/2022
Do you use Venmo or Ebay or Paypal? Then you have good news from the IRS today, the planned change in reporting of transactions using payment processors, like Venmo, has been postponed.
Under new rules, if you used a processor to pay a friend for dinner, or your rent, or sold a baseball card on Ebay - if those transactions added up to $600 or more - then you were going to get a Form 1099-K from the processor, which would also issue one to the IRS.
This could make you look like you were operating a business or had income from a business that you didn't really have. Our concern was that this would be confusing for taxpayers and create reporting difficulties.
Glad to hear the IRS listened to the concerns of professionals and will wait to implement this change - hopefully with some more input from tax preparers and taxpayers!
IR-2022-226, December 23, 2022 — The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season.