Update on Form 1099-K Letter to IRS
Washington, D.C., January 10, 2023
I meant to post about this earlier, but I'm pleased to report that after sending this letter (below), the IRS announced it would delay implementation of its lower reporting threshold for payments sent using third-party apps like Venmo, PayPal, etc.
This is good news, at least for the time being.
There are all sorts of benign payments that are not taxable income, and shouldn't trigger reporting to the IRS. (For example, when your roommate pays you for his/her half of the rent.) If implemented, this IRS policy will be a major burden to many innocent taxpayers. So I'm glad there's a hold on this to allow time to reassess.