After four years of regulatory whiplash, the 1099-K reporting threshold has been settled. Section 70432 of the One Big Beautiful Bill Act retroactively repealed the American Rescue Plan Act's $600 threshold and restored the pre-ARPA reporting standard: more than $20,000 in gross payments AND more than 200 transactions annually. ¹ The change is retroactive to transactions on or after January 1, 2022, eliminating the IRS's planned phased thresholds of $5,000 (2024) and $2,500 (2025).
For our gig-worker, online-seller, and platform clients, this is welcome simplification, but it does not change the underlying tax obligation. All income remains reportable whether or not a 1099-K issues.
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