Do you use Venmo, CashApp, Paypal, etc?
The IRS calls these third-party settlement organizations (TPSOs).
American Rescue Plan Act of 2021
mandated that any TPSO showing transactions more than $600 must send a 1099-K to the customer. However, on November 26, 2024, the IRS announced that TPSOs will be required to report transactions when the amount of total payments for those transactions is more than $5,000 in 2024; more than $2,500 in 2025; and more than $600 in calendar year 2026 and after.
Furthermore, TPSOs that have performed backup withholding for a payee during calendar year 2024 must file a Form 945 and a Form 1099-K with the IRS and furnish a copy to the payee.
What should you do? If you receive a 1099-K, let us know immediately by uploading to the portal at hometownaccountant.clientportal.com, then gather your statements from the TPSO so that you can review what were income and what were reimbursements from friends or family.
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Shelley H. Morales is your Hometown Accountant!
Give me a call today to find out how you can leave the books to me & have more of your time free! 352-358-1413 info@hometownaccountant.com www.hometownaccountant.com/book-online/
For personal things, yes, but not much.