IRS Postpones 1099K reporting another year

Those who frequently send money or receive payments from payment apps have been bracing for the new reporting requirements that require the payment platform to issue 1099Ks to anyone who received $600 or more during the calendar year. This includes paying friends back for dinner, eBay, or the occasional rental. 

This was postponed for the 2022 tax year and now at the last minute, it has been postponed again for the 2023 tax year (the 2024 filing season).  

Though this means it’s not REQUIRED, this doesn’t mean it will not happen. If the payment app has already tooled its system to issue them, the 1099K forms may still be sent out for the 2024 tax year. It takes a lot of time and money to change these systems, and abruptly dropping the plan may be more costly in the long run. 

Thankfully, many of the apps have a way that you can identify the transaction as business or personal to avoid inadvertent 1099Ks, so for most, it’s not a problem.