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IRS Urges Taxpayers to Wait for 1099-Ks if They Received Third-Party Payments Exceeding $600

S.J. Steinhardt
Published Date:
Dec 13, 2022


The IRS has provided a number of tips to prepare taxpayers for filing season, including paying attention to a change in the reporting rules for third-party transactions.

The agency’s press release on what's new and what to consider when filing in 2023 lists some key items that taxpayers should consider. Prominent among them is a change in reporting rules for third-party transactions involving goods and services, such as those using Venmo or PayPal. Before this year, Form 1099-K "was issued for third-party networks transactions, including  part-time work, side jobs or selling goods, only if the total number of transactions exceeded 200 for the year and the aggregate amount of these transactions exceeded $20,000," the IRS said.  But going forward, “the reporting requirement for these transactions has changed from totals exceeding $20,000 to exceeding $600, regardless of the total number of transactions,” according to the instructions.

The IRS also provided information on what to do when receiving a 1099-K and what to do in the case of incorrect information.

“The diligence and accuracy of the 1099-K reporting under the new lower threshold remains to be seen,” Phyllis Jo Kubey, a New York-based enrolled agent, told “I worry about self-preparing taxpayers who may not understand what’s reported on their 1099-K and why.”

The IRS also urged taxpayers "in this category who may be receiving a Form 1099 for the first time" to wait to file until they have gathered and organized all of their tax records.

“I would recommend waiting until at least the end of February or early March” to file, as companies do not have to send 1099-Ks in Jan. 31, Albert Campo, a CPA in Manalapan, N.J., told

The IRS also exhorted taxpayers to “get banked to speed tax refunds with direct deposit.” This and other guidance is available at Steps to Take Now to Get a Jump on Your Taxes.

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