What to Know about Form 1099-K Reporting

This information return is filed by third party settlement organizations (e.g., banks, PayPal) processing credit/debit card and certain other payments. The One Big Beautiful Bill Act restored the old threshold for issuing these forms to the original: reportable payment transactions exceeding $20,000 and the number of transactions exceeding 200. The IRS has updated its FAQs to reflect the new thresholds. If you receive 1099-Ks, determine if the amount of gross payments is correct; the forms don’t take into account any returns and other allowances. No reconciliation is required on the tax return. #IdeaoftheDay

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