PayPal & Venmo 1099 Changes, Again

Last year we wrote this article detailing the American Rescue Plan Act changes to reporting requirements for payment apps like Venmo, PayPal, etc. However, in late 2022, these requirements were delayed to 2023. And now, there’s been an additional delay…

​For those receiving business payments via Venmo and other apps, you won’t have to worry about 1099’s in 2023 either. That’s because the IRS has announced that 2023 would serve as another transition year for the 1099 reporting requirements that trigger 1099-K’s for $600+ in business payments received.
 
So for 2023, the 200 transaction/$20k limits remain. Then in 2024, the threshold will drop to $5,000. A subsequent drop to the original $600 will occur in 2025, completing the transition.
 
In the end, this really doesn’t affect businesses other than the formality of things, as business payments are taxable whether a 1099 is received or not.
 
This transition allows the IRS time to adjust tax forms, as well as time for business owners to adapt to changes without confusion.