IRS Postpones New Form 1099-K Reporting Rules
Anyone who was worried about the new 1099-K rules can take another year to breathe out. The IRS has delayed new 1099-K reporting rules for another year. The rules would require payment services to issue this form for business transfers over $600, instead of $20,000.
The IRS said the additional transition period will give taxpayers more time to understand the rules and properly separate personal and business payments.
While this deferral is welcome, it's worth remembering that you'll still need to report business income on your tax return, whether you receive a 1099-K or not.
For anyone who was worried that personal transfers would also be subject to reporting, the IRS has issued a statement saying that personal transfers will definitely not fall under the new rules.
Author Elina Linderman
