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Form 1099-K: Tips for taxpayers who may receive one
Form 1099-K, Payment Card and Third Party Network Transactions, is an IRS form used to report certain payment transactions. IRS Tax Tip 2023-37 provides taxpayers with information about what to do if they receive the form and what to do if it’s incorrect.
The Tax Tip advises that money received as a gift or for reimbursement doesn’t require a 1099-K and provides information on how taxpayers can minimize the chance of an error when receiving those types of payments from friends or family members.
The American Rescue Plan of 2021 changed the reporting threshold requirement for payment apps, also known as third-party settlement organizations. The IRS announced that the new Form 1099-K reporting threshold will start in tax year 2023.