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IRS Unveils Significant Modifications to Form 1099-K, Including Another Reporting Extension It seems like Christmas arrived early for taxpayers and tax professionals yet again. The IRS has declared another delay in implementing the new $600 reporting threshold for Form 1099-K by third-party settlement organizations. Here's a breakdown of the key details. The IRS designates 2023 as an additional transition year, mirroring a similar approach taken last year for the 2022 tax year. During this transition period, third-party settlement organizations are not mandated to report transactions on Form 1099-K for tax year 2023 unless they exceed the existing $20,000/200 transaction threshold. This decision aims to alleviate potential confusion stemming from the distribution of approximately 44 million Forms 1099-K to taxpayers who may not anticipate receiving them and may not have a tax obligation. As a result, third-party reporting will only be obligatory if a taxpayer receives over $20,000 and has more than 200 transactions in 2023. In practical terms, this means you are unlikely to receive Form 1099-K unless you surpass the existing transaction threshold. However, an exception exists for taxpayers subject to backup withholding. Barring such cases, most taxpayers can expect no change in early 2024 when forms are distributed, consistent with the approach taken last year.