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

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. 

Read now »

Related Content

• American Rescue Plan Act of 2021: An Analysis
  Learn more about the American Rescue Plan Act of 2021, signed into law by President Biden on March 11, 2021. The Act provided for direct payments, unemployment benefits, state and local funding, aid for schools and public health, and various credits intended to accelerate the nation's recovery from the economic and health effects of the COVID-19 pandemic. Among other provisions, the Act also excluded from gross income student loan debt forgiven from 2021 through 2025. 

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.

• Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts. 
• Generative Artificial Intelligence (AI) Resource Kit is a frequently updated collection of current Practical Guidance materials on generative AI, ChatGPT, and similar tools.
• Public Interest, Pro Bono, and Non-Profit Resource Kit offers valuable guidance for those providing pro bono legal services and assisting non-profit organizations and public interest groups. It includes useful content on topics including tenant's rights, fair housing and lending, discrimination, immigration, and general non-profit resources. 
• Public Interest, Pro Bono, and Non-Profit Resource Kit offers valuable guidance for those providing pro bono legal services and assisting non-profit organizations and public interest groups. It includes useful content on topics including tenant's rights, fair housing and lending, discrimination, immigration, and general non-profit resources. 
• Check out our Practical Guidance Author Center! Learn about the 2000+ leading attorney authors contributing to our 26 practice areas, and find out how you can Become a Practical Guidance Author. Practical Guidance is committed to amplifying diverse voices of attorneys across all differences, including gender and race.  
• Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page to see the latest topics, which also include breaking legal news and related Practical Guidance content. 
• Listen Up! The Practical Guidance and Law360 Podcasts Resource Kit features interviews with industry-leading attorneys on innovative issues in the law: NFTs, Cannabis, COVID-19, and more.
• New and Recently Updated Practical Guidance Content
  • Interest Rates on State Income Tax Underpayments and Overpayments State Law Survey
  • US Scrambling to Save R&D Credit under Global Min. Tax
  • IRS Floats Rules to Broaden Green Energy Investment Credit
  • IRS Announces New Compliance Initiatives Aimed at Large Corporations
  • Real Estate Tax: Property Reassessment May Result in Savings
  • QSBS, A Powerful Tool, But Documentation is Key
  • Notice 2023-65: Guidance on New Energy Efficient Home Credit under Section 45L

PRACTICAL GUIDANCE CUSTOMER EMAIL EDITION ON THE WEB

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+