Those new $600 1099-Ks are dead - for now

[Michael Plaks]

A lot of noise has recently been made about incoming 1099 expansion.

Good news first: at least for now, the IRS cancelled its plans - https://www.irs.gov/newsroom/i...   This relief is temporary, only for 2023, but we will take it. Maybe the whole thing will get pulled before 2024, as it happened with one similar attempt to expand 1099s a few years back.

Now, let's clarify what exactly was proposed prior to this much welcome delay.

There're two kinds of 1099s that are often confused: 

1099-NECs (formerly 1099-MISC) that you send to your contractors

No changes to this system. By January 31st, you need to issue 1099-NECs for contractors who provided $600 or more in labor to you. Here is my last year's post explaining the details: https://www.biggerpockets.com/...

1099-Ks that you receive

You get these forms if you receive business income via electronic payment processors: credit cards, PayPal, Venmo, CashApp and so on. But only if your total is $20,000 for the year or you have more than 200 sales. The scare was coming from the IRS plan to lower the $20,000 threshold down to $600, ensnarling all gig workers and creating a massive confusion and double-reporting and IRS letters and so on. This plan is now on hold. Merry Christmas!