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The IRS announced a delay in the new $600 reporting threshold for Form 1099-K for third-party organizations for the year 2023. The delay was enacted to reduce confusion among taxpayers, tax professionals and payment processors.

The IRS plans to treat 2023 as a transition year, wherein reporting will only be required if the taxpayer receives over $20,000 and has more than 200 transactions. The IRS also plans to implement a $5,000 threshold for tax year 2024, in phase with the $600 reporting threshold required by the American Rescue Plan Act. It aims to minimize burden and provide easier reporting requirements for taxpayers, working closely with third party groups, tax professionals and others to ensure compliance with the law.

- Quoted from. National Association of Tax Professionals
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Getting ready for the 2023 tax filing season? If you paid any individual or business monies in 2023 you may be required to file a 1099 with the IRS before filing season begins. The IRS now has a FREE 1099 filing system on their website. Payors no longer have to use fee-based filing systems to create and send 1099s to their payees (e.g. subcontractors).

IRIS is a free service that lets you:

Fill and file Forms 1099-MISC, 1099-NEC, 1099-INT, 1099-DIV and more
Submit up to 100 records per upload with CSV templates
File corrected Forms 1099
Manage issuer information
Request automatic extensions to file Forms 1099
Bulk file with Application to Application (A2A)
Any person or entity can e-file Forms 1099 with IRIS:

Individuals and small businesses
Large businesses
Tax exempt organizations
Government agencies
Software developers
Third party filers
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