For the second year in a row, the IRS has decided to postpone implementation of a rule change that would affect tax filers who receive business income for their goods and services via payment apps and online marketplaces like Venmo, CashApp, Etsy and Airbnb, among others.
The change might have resulted in 44 million more 1099-K forms being sent in January to such filers, including small business owners, freelancers, those with side hustles and gig workers.
In explaining why it is postponing implementation again, the IRS cited concern over potential taxpayer confusion and the need to make it easier for all parties to comply with the change.
“We spent many months gathering feedback from third-party groups and others, and it became increasingly clear we need additional time to effectively implement the new reporting requirements,” said IRS Commissioner Danny Werfel. “We want to make this as easy as possible for taxpayers. We will work to make the new reporting requirements easier for them, and we’ll work closely with third-party groups, tax professionals and others to find the smoothest path to ensure compliance with the law.”
www.cnn.com/2023/11/21/success/irs-postpones-1099-k-rule-change/index.html