The IRS will received approximately 44 million forms 1099-k (this form is for electronic transactions over $600 during the year and related to applications for payment settlement entities such as Vemno, eBay, Paypal, etc.) in 2024 related to the 2023 tax year from about 14 million received in the prior year. Note that Zelle is not subject to the 1099-k form as it is merely bank transfers from one account to another.
This significant increase is driven by the new threshold of annual payments of $600 per taxpayer, while the requirement was annual payments of $20,000 and 200 transactions in the prior year.
Note that the taxpayer will have to report this income and offset against any potential expenses related to it. If the taxpayer does not report that 1099-k, the IRS will automatically send a notice letter notifying of the discrepancy between the information obtained by the IRS and the filed tax return from the taxpayer.
Article Accounting Today – https://www.accountingtoday.com/news/irs-will-receive-30-million-more-1099-k-forms-thanks-to-lower-threshold#:~:text=The%20Internal%20Revenue%20Service%20expects,according%20to%20a%20new%20report.
