E-Commerce Platforms Impacted by Recent IRS Announcement
PUBLISHER’S NOTE: After publishing an article on this blog on December 17, 2022, the I.R.S. made a change as to the effective date for the “gig-tax” rule discussed. Please read the update below.
UPDATE: I.R.S. Makes Tax Changes for E-commerce Platforms, Pauses Requirement for 1099s
On December 23, 2022 the I.R.S. paused the requirement that e-commerce platforms such as PayPal, Venmo, Etsy and Airbnb send 1099s to any users who had gross income through the app of at least $600 in 2022.
Previously, e-commerce users received 1099s if they had gross income for the year of at least $20,000 or at least 200 transactions. As part of the American Rescue Act, in March of 2021 Congress changed the threshold to $600, to take effect in 2022. Now the I.R.S. had instituted a one year delay for the law to go into effect. According to the I.R.S., this delay is to help reduce confusion during the 2023 tax-filing season and provide more time for taxpayers to prepare and understand the new reporting requirements.
Keep in mind that this delay does … Read More... “UPDATES TO ALERT – Regarding Tax Changes for 2023 Directed to Venmo and PayPal Users Originally Posted December 17, 2022”