New laws passed in 2021 require third-party settlement networks such as PayPal, Amazon, eBay, Square, or Venmo to issue Form 1099-Ks to payees who are paid over $600 a year for goods and services. These new requirements were to take effect in 2022 for the filing of 2022 tax returns. However, this requirement has been delayed and 1099-K forms for 2023 will be sent out in 2024 and will be reported on your 2023 tax return.
Keep in mind that these statements will include a sum total, so the burden is on the taxpayer to prove if the income reported on the statement was a profit or a loss. For example, if you buy some concert tickets and then sell them on Stubhub, you need to keep track of how much you paid for them and how much you sold them for to determine if you lost or made money.
Congress and taxpayer groups would like to see this law repealed or at least the threshold increased to $5,000 or $10,000 and/or the start date of the new laws delayed. We will keep an eye on any new developments that might occur regarding changes to this new requirement.