Topic: IRS Delays Tax Changes for PayPal, eBay Managed Payments Users

[W1RC]

Yay!!!!! Temporary reprieve from the 1099 craziness.

A provision of the American Rescue Plan Act (P.L. 117-2) changed who would receive 1099-K forms from third-party settlement organizations (TPSOs), like PayPal, eBay, Venmo and Cash App. Previously, people who had more than 200 transactions and payments totaling more than $20,000 received these forms. Now, people with payments totaling more than $600 are scheduled to receive these forms. The intent of the legislation was to better catch financial crimes like money laundering and tax evasion.

The Internal Revenue Service delayed implementation of the change and it will no longer take effect in 2023. The Stop the Nosy Obsession with Online Payments (SNOOP) Act (S. 26) would permanently reverse the change implemented by the American Rescue Plan Act. The bill has been referred to the Senate Committee on Finance.

https://www.nytimes.com/2022/12/23/business/irs-venmo-digital-wallets.html

If the above article hits a paywall, try here?
https://www.kiplinger.com/taxes/irs-form-1099-k-600-dollar-reporting-threshold

Hopefully they will use the extra time to implement the new requirements to spare the little guy selling off their own property from all the additional paperwork and record keeping this would entail.