The IRS has issued a one-year delay for the 1099-K tax reporting change, applying to business transfers over $600. Here's what taxpayers need to know.
She said the postponement should give taxpayers more time to "familiarize themselves with the rules" and "properly identify personal versus business payments" to avoid future 1099-K reporting errors.Although many tax professionals welcomed Friday's announcement, the American Institute of CPAs is still pushing Congress for reform.
"While the AICPA is grateful to the commissioner for this reprieve, we urge Congress to strongly consider previous recommendations to raise the threshold, possibly in accordance with the present-day cost-of-living levels," AICPA president and CEO Barry Melancon said in a statement on Friday.
What's more, the 1099-K reporting delay only applies to your federal taxes, Campo said, as some states already have lower reporting thresholds. If you've started a side business, it's critical to save your expense receipts for any deductions you take to