For the second year in a row, the IRS has delayed full implementation of their 1099-K reporting requirement that would require all payment services to report transactions or transaction totals of $600 or more, or entities with payees receiving 200 or more transactions in a calendar year.
IRS Notice 2023-74 specifies, "This notice announces that calendar year 2023 will be regarded as a further transition period for purposes of Internal Revenue Service (IRS) enforcement and administration with respect to the implementation of the amendments made to the minimum threshold for reporting by third party settlement organizations under section 6050W(e) of the Internal Revenue Code by the American Rescue Plan Act of 2021, Public Law 117-2, 135 Stat. 4 (March 11, 2021)."
For purposes of this year, 2023, a third party settlement organization is not required to report payments in settlement of third party network transactions with respect to a participating payee unless (1) the gross amount of aggregate payments to be reported exceeds $20,000 and (2) the number of such transactions with that participating payee exceeds 200.
Nor will the IRS assert penalties under section 6721 or section 6722 for a third party settlement organization for failing to file or failing to furnish Forms 1099-K with respect to a payee unless the gross amount of aggregate payments to be reported exceeds $20,000 and the number of such transactions with that participating payee exceed 200.