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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.
Persons: you’re, you’ve, Wendy Walker, ” Walker, You’ve, , David Mellem Organizations: CNN, IRS, Ashwaubenon Locations: , Sovos, Maryland, Virginia , Massachusetts, Vermont
This month’s books all feature women making bad decisions — about themselves, about other people and about how to confront the threats swirling around them. Let’s begin with Detective Elise Sutton, the forensics expert thrust into a bewildering crisis in Wendy Walker’s WHAT REMAINS (Blackstone, 293 pp., $27.99). Shopping for towels at a local megastore, Elise is startled by a shooter firing into the crowd. “I am suddenly aware that, after 12 years in the department, this is the first time I have drawn my weapon in the outside world,” she thinks. And then, just as the gunman points his weapon at a bystander, she shoots him dead.
Persons: Let’s, Elise Sutton, Wendy Walker’s, Elise
New York CNN —Anyone getting paid for their goods and services through apps like Venmo, PayPal or CashApp, or platforms like Etsy and Airbnb, just got a reprieve from the IRS. But the 1099-K reporting will make it harder for someone to evade the taxes they owe by underreporting their business income. The rule also does not apply to personal transactions you conduct on an electronic payment platform. Lastly, the 1099-K reporting rule does not apply to any transactions made through Zelle. But the IRS may still get reporting on at least some of your business transactions on Zelle, Walker said.
If you get paid through apps like Venmo or PayPal or platforms like Etsy or Airbnb, preparing your taxes next year may be a little more confusing than usual. But the new lower threshold of $600 opens the door to a virtual paper chase of tax forms for the 2023 tax filing season. But the 1099-K reporting will make it harder for someone to evade the taxes they owe by underreporting their business income. Lastly, the 1099-K reporting rule does not apply to any transactions made through Zelle. But the IRS may still get reporting on at least some of your business transactions on Zelle, Walker said.
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