Some American taxpayers are reportedly receiving 1099-K tax forms from the Internal Revenue Service (IRS) even though they may not be legally obligated to file it, which comes amid the tax agency flip-flopping on the income threshold applicable regarding the form.
The form 1099-K is a document sent by third-party networks like PayPal, Venmo, Amazon, and Square when a user’s gross sales exceed a set threshold. Until last year, that threshold used to be $20,000. But the American Rescue Plan of 2021 reduced the threshold to $600, which was supposed to come into effect during tax year 2022. The IRS postponed the new rule by one year, with the new threshold only getting active beginning tax year 2023….