IRS delays lower 1099-K reporting threshold another year, but not for credit card transactions

The IRS will treat 2023 as an additional transition year for implementation of the American Rescue Plan Act’s lower 1099-K reporting threshold, but only for third-party network transactions, such as those through Venmo, PayPal, Apple Pay, online marketplaces, etc. (IRS Notice 2023-74)

The IRS will not regard 2023 as a transition year with respect to payment card transactions, which are transactions where a customer pays with a credit card, such as Visa, Mastercard, or American Express.

This means that taxpayers who receive payments through third-party network transactions should not receive Form 1099-K for the 2023 taxable year, unless the aggregate payments received through a single third-party network exceeded $20,000 and the total number of transactions exceeded 200 for the year.

However, taxpayers should expect to receive Form 1099-K for the 2023 taxable year for credit card transactions if the aggregate payments received through a single credit card company exceeded $600, regardless of the number of transactions.

In the IRS’s press release announcing the 1099-K reporting delay, it stated that at a later date it intends to announce a filing threshold for third-party network transactions for 2024 of $5,000. (IR-2023-221) The $5,000 filing threshold for 2024 was only part of the press release and was not made part of Notice 2023-74.

The IRS Notice 2023-74 is available at:

The IRS press release is available at:

We’ll cover this topic and all of the tax law changes that happened in 2023 at Spidell’s 2023/24 Federal and California Tax UpdateClick here for details.