Possible delay in implementation of 1099-K tax forms

[Arvopart17]

I’m not a tax expert, so this is just informational. Not sure everyone knew this, but a recent law in the US made anything more than $600 reportable to the IRS for side-gig and sales payments through PayPal, Venmo, eBay, reverb etc. so if you sold a horn or got paid for a gig through those services, you may have had a new tax form coming your way in the US next year.

https://www.cnet.com/personal-finance/t ... -or-venmo/

Some possible good news- the WSJ is reporting that the IRS is delaying the implementation by 1 year to give congress time to potentially change the $600 threshold.

Having sold a horn or two this year, I’m excited by this development. Hope it sticks.

[Matt K]

I thought this just made the enforcement more potent. That $600 threshold has existed for quite some time right? I’ve had bands where some members had to fill out paperwork for it since they did more than $600 worth of work but others who just subbed were under the radar

[Arvopart17]

For digital payments it was a $20,000 threshold before PayPal or eBay had to send you an form until this year. My understanding is that physical payments, like getting a check after a concert were handled differently.

And don’t get me wrong, I’m not suggesting we shouldn’t pay taxes on things we are required to. I just really wasn’t looking forward to multiple new tax forms to collect and submit.