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I Want to See Your Taxable Income, But Can’t: TPSO Reporting Change Delayed (again)

December 12, 2023 (3 min read)

The American Rescue Plan Act of 2021 (also called the COVID-19 Stimulus Package), Pub. L. No. 117-2, raised the de minimis threshold for Form 1099-K reporting on third party settlement organizations (TPSOs), like PayPal and Venmo, under I.R.C. § 6050W(e), from amounts in excess of $20,000 on 200 or more transactions to any payments made to a participating payee that exceed a $600 threshold, regardless of the number of transactions. I.R.S. Notice 2023-10 had delayed application of the reduced reporting amount for the 2022 tax year. Now, I.R.S. Notice 2023-74 provides that for the 2023 taxable year, a TPSO once again is not required to report payments in settlement of third-party network transactions regarding a participating payee unless the amount to be reported exceeds $20,000—and the number of such transactions with that participating payee exceeds 200. 

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DID YOU KNOW? The Tax State Law Comparison Tool recently added three new topics for comparison: (1) Corporate Income Tax Rates, (2) Personal Income Tax Rates, and (3) Interest Rates on State Income Tax Underpayments and Overpayments.

Practical Guidance Updates 
Featuring the latest updates from your Practical Guidance account.    

  •  Tax Key Legal Developments Tracker (Federal)—keep up to date with key legal developments!
    • Business Entities. IRS and Treasury Department issue proposed regulations that would update regulations regarding whether persons are treated as related persons who are subject to certain special rules pertaining to transactions with partnerships. The regulations affect partnerships that enter into transactions with related persons that result in gain or loss on a sale or exchange of property or result in a difference in the time at which income and deductions are recognized because of the persons' different methods of accounting. Transactions Between Related Persons and Partnerships (Notice of proposed rulemaking), 88 Fed. Reg. 82792 (Nov. 27, 2023).
    • Practice, Procedure, and Controversy. IRS provides the interest rates for underpayments and overpayments, determined under R.C. Section 6621for the calendar quarter beginning January 1, 2024. Rev. Rul. 2023-22.


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