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The OBBBA retroactively reinstated the reporting threshold in effect prior to the passage of the American Rescue Plan Act of 2021, so third-party settlement organizations are not required to file 1099-Ks unless the gross amount of reportable payment transactions to a payee exceeds $20,000 and the number of transactions exceeds 200.
The requirement to file a Form 1099-K can be triggered when payments are received for goods or services through a payment settlement entity.
In addition to the threshold topics above, the IRS questions cover, among other things:
- When a taxpayer may receive a 1099-K even if their income fell below the threshold;
- The definitions and thresholds of payment cards;
- The definition of third-party settlement organizations; and,
- What to do if a 1099-K is incorrect.
