![]() Your vendors might receive a 1099-K as well. Of course, the IRS uses these to confirm that folks have reported at least the amount of income shown on the form. ![]() Similar to all 1099s, these forms are sent to recipients and to the IRS by January 31st following the year. ![]() For the calendar year of 2021, the threshold is transactions totaling at least $20,000 AND at least 200 transactions. If your customers pay you with credit cards or if they pay you through a third-party network such as PayPal, Zelle, Venmo, etc, then you will receive a 1099-K if the amount that is processed exceeds the threshold. What is a 1099-K?Ī 1099-K is a form you could receive, so you don't prepare these. If you miss this update, you will have a very difficult time when you prepare the 1099s in 2023. If you pay vendors through a third-party payor like PayPal, Venmo, Zelle, and more, you need to be aware of a significant change in the rules that went into effect on Jan 1st, 2022.
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