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.

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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.

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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.