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Why 1099-Ks Could Be a Tax Professional’s Headache This Season
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Subscribe26 FEB 2025 / ACCOUNTING & TAXES
The Internal Revenue Service (IRS) is tightening its regulations surrounding third-party payment transactions, lowering the reporting threshold for form 1099-Ks to $600 by 2026, down from its current $20,000. It is necessary for certified public accountants (CPAs) to ensure their clients remain compliant and do not mistakenly report every dollar as taxable income, as these forms report gross transactions and do not distinguish between business and personal transactions.
Think 1099-Ks were just another form to glance at? Think again. The IRS is doubling down on third-party payment transactions, and CPAs must stay ahead of the curve. Gone are the days of the $20,000 threshold now, with reporting dropping to $5,000 for...
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