A big announcement was released 12/23/2022. The IRS delays the new 1099-K reporting requirements previously announced for all Venmo, PayPal, Stripe, and other cash app payment sites. This rule applied to any transactions, including part-time work, side hustles and anyone selling goods.
Earlier in 2022 it was announced that transactions made through cash app payment sites over $600 would receive a 1099-K tax form. With this announcement, many self-employed people are breathing a sign of relief.
The IRS announced Friday that the delay was to help reduce confusion for the 2022 tax reporting season. It also allows time for people to understand and prepare for implementation of the rule for the 2023 tax filing season. To read information from the IRS, here is the announcement link: https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-third-party-payment-platforms-forms-1099-k.
For anyone with business transactions from freelancing, gig jobs, part-time work and the sale of goods are expected to report all incoming revenue. This 1099-K provision is a method to ensure people do. For further information from the IRS about self employment taxes, here is a link: https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center
Personal money transfers for things like splitting meals or gifts or paying allowances are not part of the new rule, but they may trigger the form to be sent accidentally. It will be up to everyone to keep good records and contact the payment site to correct the records.
Protecting Yourself from Hackers
On December 22, LastPass published a new blog post with further information about leaked customer information, saying that account information such as billing addresses, email addresses, end-user names, telephone numbers, and IP address info were obtained. Also leaked was customer vault data, which includes unencrypted data such as website URLs and encrypted data such as website usernames and passwords, secure notes, and form-filled data.
I’ve passed information about Multifactor Authentication many times. The Cybersecurity and Infrastructure Security Agency (CISA) updated their website this week to help you get started: https://www.cisa.gov/mfa Please take this seriously – the hackers are busy.
Take Some Time for You
This is the time of year to take some time for you! Wherever you are, know how much I appreciate you. -Lynn
