A rule change (finally) takes effect, but only partiallyA rule change that greatly increases the reporting responsibility of third-party payment platforms to issue 1099-Ks to users was supposed to go into effect in 2021. And the IRS notes in its 1099-K guide that some companies may choose to send a 1099-K to users with business transactions below $5,000. Some things won’t change — like your tax obligation and the chance for errorsKeep in mind, the rule change does not in any way alter your tax obligations. You’ve always been required to report all your taxable business transactions. Familiarize yourself with how the platforms where you do business plan to handle their 1099-K reporting and what they may need from you to facilitate that.

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Persons: you’re, you’ve, Wendy Walker, ” Walker, You’ve, ”, David Mellem Organizations: CNN, IRS, Ashwaubenon Locations: “, Sovos, Maryland, Virginia , Massachusetts, Vermont