--- title: "2023 IRS Update: Navigating New 1099-K Reporting Rules for Business Owners" description: For transactions in 2024 and beyond, third-party payment processors will have to report (1099-K) if you earn over $600 in a year, regardless of the number of transactions. Learn more. image: https://media.insognacpa.com/hubfs/1099-K-Reporting.png --- [![Insogna logo small](https://media.insognacpa.com/hs-fs/hubfs/Insogna%20logo%20small.png?width=300&height=73&name=Insogna%20logo%20small.png "Insogna logo small")](https://insognacpa.com/) [![Insogna logo small](https://media.insognacpa.com/hs-fs/hubfs/Insogna%20logo%20small.png?width=300&height=73&name=Insogna%20logo%20small.png "Insogna logo small")](https://insognacpa.com/) [![Insogna logo small](https://media.insognacpa.com/hs-fs/hubfs/Insogna%20logo%20small.png?width=300&height=73&name=Insogna%20logo%20small.png "Insogna logo small")](https://insognacpa.com/) [![Insogna logo small](https://media.insognacpa.com/hs-fs/hubfs/Insogna%20logo%20small.png?width=300&height=73&name=Insogna%20logo%20small.png "Insogna logo small")](https://insognacpa.com/) Content Title Description < Previous page Next page > [Why Us](https://insognacpa.com/why-us) | [Business Accounting](https://insognacpa.com/business-accounting) | [Fractional CFO](https://insognacpa.com/fractional-cfo) | [Minimizing Taxes](https://insognacpa.com/tax-strategy/) [Building Wealth](https://insognacpa.com/building-wealth) | [Learning Center](https://insognacpa.com/learning-center)| [Contact Us](https://insognacpa-6129290.hs-sites.com/en-us/contact-us) [eCommerce](https://media.insognacpa.com/blog/tag/ecommerce) [Tax](https://media.insognacpa.com/blog/tag/tax) # 2023 IRS Update: Navigating New 1099-K Reporting Rules for Business Owners By [Chase Insogna, CPA](https://media.insognacpa.com/blog/author/chase-insogna-cpa) Dec 8, 2023 1:21:40 PM 1 Minute Read Hey there, business owners! Insogna CPA here. Today we’re breaking down some crucial IRS updates in a way that doesn't make your eyes glaze over. ## So, let's dive into the world of [Form 1099-K](https://www.irs.gov/newsroom/irs-announces-2023-form-1099-k-reporting-threshold-delay-for-third-party-platform-payments-plans-for-a-5000-threshold-in-2024-to-phase-in-implementation). This little form is used by third-party payment processors (think PayPal, Stripe) to report your business transactions to the IRS. Previously, these processors only needed to report your transactions if you crossed two thresholds: 1. over $20,000 in transactions and 2. more than 200 transactions in a year. Enter the [American Rescue Plan Act](https://www.whitehouse.gov/american-rescue-plan/). This law tweaked the rules a bit, and the IRS was originally going to put it in place in 2022, and then in 2023. Now, for transactions in 2024 and beyond, third-party payment processors will have to report if you earn over $600 in a year, regardless of the number of transactions. Yep, just $600. ## However, there's still a breather for 2023! The IRS is calling this year another "transition period." So, for now, we're sticking to the old threshold of $20,000 and 200 transactions. This gives you a bit of time to adjust and prepare for the tighter reporting requirements next year. ## What does this mean for you? It's simple: keep a closer eye on your income through these platforms. While this change doesn't mean you'll owe more taxes, it does mean more of your income will be visible to the IRS. So, it's crucial to keep your records straight and report your income accurately. Remember, staying informed is key to navigating these changes smoothly. Let's keep the entrepreneurial spirit alive and kicking, and make smart, informed business decisions! ## Keep hustling! Remember, you can [contact us](https://media.insognacpa.com/contact-us) if you have questions about this change.  ## Recommended For You [![documenting business loans](https://media.insognacpa.com/hubfs/Documenting-Business-Loans.png)](https://media.insognacpa.com/blog/documenting-business-loans-in-c-and-s-corporations) [S Corp](https://media.insognacpa.com/blog/tag/s-corp) [Accounting](https://media.insognacpa.com/blog/tag/accounting) [Business Tax](https://media.insognacpa.com/blog/tag/business-tax) 2 Min Read ### [Avoid Tax Trouble: The Importance of Documenting Business Loans in C and S Corporations](https://media.insognacpa.com/blog/documenting-business-loans-in-c-and-s-corporations) [![Picture of Chase Insogna, CPA](https://media.insognacpa.com/hubfs/Chase-Insogna-1024x1024.png) Chase Insogna, CPA Sep 18, 2023 2:29:11 PM](https://media.insognacpa.com/blog/author/chase-insogna-cpa) [![corporate transparency act](https://media.insognacpa.com/hubfs/corporate-transparency-act.png)](https://media.insognacpa.com/blog/corporate-transparency-act) [Business Tax](https://media.insognacpa.com/blog/tag/business-tax) 1 Min Read ### [Corporate Transparency Act Reporting Requirements - Your Action Required!](https://media.insognacpa.com/blog/corporate-transparency-act) [![Picture of Chase Insogna, CPA](https://media.insognacpa.com/hubfs/Chase-Insogna-1024x1024.png) Chase Insogna, CPA Nov 14, 2023 12:22:09 PM](https://media.insognacpa.com/blog/author/chase-insogna-cpa) [![Maximizing Tax Benefits: Inflation's Surprising Impact on Federal Tax Breaks](https://media.insognacpa.com/hubfs/inflations-impact-federal-tax-breaks.png)](https://media.insognacpa.com/blog/maximizing-tax-benefits-inflations-surprising-impact-on-federal-tax-breaks) [Tax](https://media.insognacpa.com/blog/tag/tax) [Tax-Deductions](https://media.insognacpa.com/blog/tag/tax-deductions) 3 Min Read ### [Maximizing Tax Benefits: Inflation's Surprising Impact on Federal Tax Breaks](https://media.insognacpa.com/blog/maximizing-tax-benefits-inflations-surprising-impact-on-federal-tax-breaks) [![Picture of Chase Insogna, CPA](https://media.insognacpa.com/hubfs/Chase-Insogna-1024x1024.png) Chase Insogna, CPA Jun 23, 2023 1:37:50 PM](https://media.insognacpa.com/blog/author/chase-insogna-cpa) Insogna CPA 3355 Bee Cave Road, Suite 503 Austin TX 78746 (512) 891-8200 - [Contact Us](https://insognacpa.com/contact-us/) - [Customer Reviews](https://insognacpa.com/testimonials-and-reviews/) - [Careers at Insogna CPA](https://insognacpa.com/careers/) - [Privacy Policy](https://insognacpa.com/privacy-policy/) - [Texas Board of Accountancy License](https://www.tsbpa.texas.gov/php/fpl/frmlookup.php?x=T71ujVIEr%2Fg%3D) [Follow us on Facebook](https://www.facebook.com/InsognaCPAs) [Follow us on LinkedIn](https://www.linkedin.com/company/insognacpa-com/) [Follow us on Twitter](https://twitter.com/InsognaCPA) [Follow us on Instagram](https://www.instagram.com/insognacpa/) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Chase Insogna, CPA", "url" : "https://media.insognacpa.com/blog/author/chase-insogna-cpa" }, "dateModified" : "2023-12-08T19:22:43.320Z", "datePublished" : "2023-12-08T19:21:40.000Z", "headline" : "2023 IRS Update: Navigating New 1099-K Reporting Rules for Business Owners", "image" : [ "https://media.insognacpa.com/hubfs/1099-K-Reporting.png" ], "mainEntityOfPage" : { "@id" : "https://media.insognacpa.com/blog/2023-new-1099k-reporting-rules-for-business-owners", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://media.insognacpa.com/hubfs/InsognaLogoSite2020.png" }, "name" : "Insogna CPA" } } ```