The IRS recently announced a delay in reporting thresholds for third-party settlement organizations (TPSOs) like PayPal, Venmo, Etsy and Poshmark, set to take effect for the 2022 tax filing season. As a result, TPSOs will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021.
Calendar year 2022 will now be considered a transitional period for implementing the lowered threshold, meaning the previous reporting threshold of $20,000 in payments from over 200 transactions will remain in effect.
To learn more about the IRS's announcement visit irs.gov to read the news release in its entirety.
The law is not intended to track personal transactions like ride shares, gifts, or paying someone for a household bill.