Part 8/10:
The Role of Payment Platforms
Platforms like PayPal, Venmo, and Cash App can still voluntarily issue 1099K forms, even if your earnings do not meet the threshold. Mistakes can happen, and forms can sometimes be over-reported or contain errors—some of which have previously led to millions of incorrect IRS notices. Therefore, taxpayers should be prepared to verify their records and keep receipts in case of audits.
Key Takeaways for Taxpayers
The $600 rule is effectively dead; the long-term threshold remains at $20,000 and 200 transactions.
You must report all taxable income, regardless of whether you receive a 1099K.
Platforms may still issue 1099K forms voluntarily, so mistakes are possible.