Third-party payment processors and recipients get extra year of relief from stricter information reporting requirements

The IRS announced November 21 that it will extend for one additional year the transition relief from the enforcement of the more stringent information reporting requirements for third-party payment processors that were enacted in 2021.

The American Rescue Plan Act of 2021 (P.L. 117-2) reduced the dollar-threshold triggering the Form 1099-K reporting requirement from $20,000 to $600 and eliminated the 200-transaction threshold, effective for reporting for returns filed for calendar years after 2021. A number of lawmakers in both parties tried—without success—to include a provision delaying the implementation of the stricter reporting thresholds in the omnibus tax-and-spending legislation that Congress approved in December of 2022; however, the IRS late last year issued Notice 2023-10, in which it delayed enforcement of the new rules until after 2023.

Source Deloitte

 

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