The IRS has revised and updated its frequently asked questions (FAQs) for Form 1099-K, which reports on payments received from credit, debit and stored value cards, as well as payment apps and online marketplaces. These FAQs supersede earlier FAQs that were posted on March 22, 2023.

The updates come as the IRS seeks to reduce uncertainty over the reporting requirements for payment card and third- party network transactions. The IRS initially lowered the reporting threshold from $20,000 to $600 in 2022, then deferred the implementation of that rule at the end of that year, and again at the end of 2023, opting to treat 2023 as a transitional year. That means that reporting will not be required for 2023 income unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023, although taxpayers may still receive a form for amounts less than the required reporting amount.

The IRS expects to receive roughly 44 million Form 1099-Ks in 2024—about 30 million more than in 2023—but does not have a plan to analyze the data "to inform enforcement and outreach priorities,” the Government Accountability Office found in November 2023.

The updates to the FAQs contain substantial changes within each section: General Information; What to Do If You Receive a Form 1099-K; Common Situations; Third Party Filers of Form 1099-K; and Should My Organization Be Preparing, Filing and Furnishing Form 1099-K?