What’s Changed with Form 1099-K Reporting
The IRS issued a Fact Sheet clarifying that under the One, Big, Beautiful Bill, third-party settlement organizations must report transactions via Form 1099-K only when the payee exceeds both:
- $20,000 in gross payments, and
- More than 200 transactions during the calendar year.
This restores the pre-2022 test, replacing ARPA’s lower payment thresholds. (irs.gov)
Why It Matters
If you receive gross payment transactions above both thresholds, the payer (platform) must issue you a 1099-K. This affects your total taxable income, especially for side gigs, self-employed work, or online sales where payment platforms handle collections.
Action Steps for Payees
- Track both transaction counts and amounts: Record when you cross either benchmark.
- Collect all Form 1099-Ks: Even if under 200 transactions but over $20,000, you need the form (both conditions apply, so if only one condition is met, reporting isn't required).
- Reconcile platform statements: Compare Form 1099-K data with your own income tracking to catch missing or incorrect reports.
PTIN Renewal: Who and When
If you’re a tax preparer in the U.S., you must hold a valid Preparer Tax Identification Number (PTIN) to prepare federal returns or claims for compensation. Key points:
- Renewal period for 2026 is now open, with all 2025 PTINs expiring December 31, 2025. (irs.gov)
- Fee is $18.75, non-refundable.
- The system now uses ID.me for identity verification for those with SSNs. If no SSN, other verification applies. (irs.gov)
- Renewing online usually takes ~15 minutes; paper renewals take about 6 weeks. (irs.gov)
Example Compliance Scenario
James sells prints of his photography via online marketplaces and earns $22,000 in gross via Stripe, PayPal, etc., with 150 transactions. Under the new rules, James will not receive a 1099-K, because while he exceeded the monetary threshold, he did not exceed the transaction count threshold. ⇒ still report full earnings on Schedule C.
Meanwhile, tax professionals like Maria preparing returns need to renew their PTIN by year-end and cannot prepare returns without it. Missing it means non-compliance—and potential penalties or inability to represent clients.
Best Practices
- Set dashboards or alerts to know when 200 transactions are reached.
- Use accounting software or spreadsheets to maintain income records across platforms.
- For tax professionals: renew PTIN early in case identity verification or documentation issues arise.
- Attend continuing education if enrolled agent status or credentials are required; ensure ethics hours and other requirements are up to date.
These compliance updates mean lower threshold risks for forms and a strict deadline for preparers. Awareness and process discipline are key to avoid surprises during filing season.