The new rules require users to report payment transactions via payment apps including Venmo, PayPal, Stripe and Square for goods and services meeting or exceeding $600 in the calendar year. That means that third-party payment networks such as Venmo and PayPal will report most payments to IRS. This lower threshold was enacted in the American Rescue Plan (ARP) back in March 2021.
IRS announced that it will delay implementation of the 1099-K changes for 2023 filing season.
The reporting requirement for payments above $20,000 and exceeding 200 transactions within the calendar year will remain, instead of the much lowered new $600 amount.