Monday December 12, 2022 – The new tax season is closing in on us. Many taxpayers want to file their tax returns as early as possible, to get their refund quickly. The IRS is set to begin accepting and processing 2022 tax returns Monday January 24, 2023.
Usually, the IRS encourages taxpayers to file early. But wait! This year, because of the new 1099 K rules, the IRS advises taxpayers to slow down. Wait for key documents. Remember, the third-party payment networks, like Venmo and PayPal? Remember, when the IRS told us it wasn’t a big deal? Now, it is a Big Deal!!
Before the 2022 tax year, only taxpayers with 200 or more transactions AND worth more than $20,000 were received a 1099 k. Now, under the new rules, the threshold is transactions worth more than $600, no matter how many transactions. A BIG change. Many more taxpayers are going to have to deal with these tax forms. Like it or not.
Attorney Steven A. Leahy will discuss the IRS warning on Today’s Tax Talk.