It didn’t take long after the IRS announced an additional delay in enforcing the new $600 reporting threshold for Forms 1099-K (more here) to garner reactions across the country.
National Taxpayer Advocate Erin Collins issued the following statement: The IRS’s decision to delay implementation of the new Form 1099-K reporting requirements is good news for taxpayers, tax professionals, and payment processors. Equally important is the IRS’s announcement today that it will adopt a phased-in approach and only require reporting of transactions totaling more than $5,000 next year. Taxpayers and tax professionals need certainty and clarity about what is expected of them. By announcing its plans for this year and next year now, the IRS is taking steps to provide it. For the sake of clarity, however, it’s important for taxpayers to understand that today’s announcement applies only to reporting requirements imposed on third parties. If income is taxable, taxpayers have been and continue to be required to report it on their tax returns. Nothing about the Form 1099-K reporting dates changes that.
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