Compliance
Compliance Essentials: Navigating the Revived 1099-K Threshold and PTIN Renewal Requirements
Stay compliant by understanding the reinstated 1099-K reporting thresholds and the timeline for renewing your Preparer Tax Identification Number.
By NomadicTax Research Team • 5-8 min read • November 21, 2025
## 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](https://www.irs.gov/newsroom/irs-issues-faqs-on-form-1099-k-threshold-under-the-one-big-beautiful-bill-dollar-limit-reverts-to-20000?utm_source=openai))
### 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](https://www.irs.gov/newsroom/irs-reminds-tax-pros-to-renew-ptins-for-the-2026-tax-season?utm_source=openai))
- 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](https://www.irs.gov/newsroom/irs-reminds-tax-pros-to-renew-ptins-for-the-2026-tax-season?utm_source=openai))
- Renewing online usually takes ~15 minutes; paper renewals take about **6 weeks**. ([irs.gov](https://www.irs.gov/tax-professionals/ptin-requirements-for-tax-return-preparers?utm_source=openai))
## 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.