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26 November 2024

IRS delays $600 reporting threshold for third-party settlement organizations until 2026

In Notice 2024-85, the IRS confirmed its previously-announced delay in implementing the reduced $600 de minimis threshold for reporting transactions by third-party settlement organizations (TPSOs) on Form 1099-K, Payment Card and Third Party Network Transactions. The IRS said it would not penalize TPSOs who use a $5,000 threshold for 2024. In addition, the IRS announced a $2,500 threshold for 2025, which it called the "final" transition year. The $600 threshold will be in force for 2026. A Tax Alert is forthcoming.

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Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor

Document ID: 2024-2163

 

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