That is for businesses, Cash app PayPal venmo etc,to report to the IRS that you had this source of income. 1099k has to deal with Internet transactions. This is absolutely for personal accounts.
Thank you. I keep seeing memes like this but have never heard of anyone I know actually getting audited. I only got audited once when I completely forgot to include the income from a place I worked for a couple weeks, which is fair (and probably automated on their end considering they would’ve sent their withholding information to the IRS anyways)
https://www.irs.gov/newsroom/irs-announces-2023-form-1099-k-reporting-threshold-delay-for-third-party-platform-payments-plans-for-a-5000-threshold-in-2024-to-phase-in-implementation
https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-platform-payments-in-2023-plans-for-a-threshold-of-5000-for-2024-to-phase-in-implementation
https://www.irs.gov/businesses/understanding-your-form-1099-k
Here are some resources to counter this misinformation.
Most importantly being that this limit, form, and change is for businesses. This is not for personal accounts.
That is for businesses, Cash app PayPal venmo etc,to report to the IRS that you had this source of income. 1099k has to deal with Internet transactions. This is absolutely for personal accounts.
Yes, yet this is what people are acting as if this regulations are. Keyword here is should.
Thank you. I keep seeing memes like this but have never heard of anyone I know actually getting audited. I only got audited once when I completely forgot to include the income from a place I worked for a couple weeks, which is fair (and probably automated on their end considering they would’ve sent their withholding information to the IRS anyways)
Yes that process is basically automated. It’s actually called The Automated Underreporter.