Millions of casual online sellers can breathe a sigh of relief since a confusing and concerning $600 IRS reporting rule won’t go into effect as planned for 2023. This is the second time the IRS has delayed implementing the 1099-K $600 tax reporting rule.
That rule required payment apps and online marketplaces (think PayPal, Venmo, Etsy, eBay, StubHub, etc.) to send 1099-K forms to anyone who received over $600 in payments for goods or services (even in a single transaction). Early estimates were that more than 40 million taxpayers would have received forms. Some taxpayers wouldn’t expect one, including some sellers without a tax obligation.
