Part 2/9:
The original proposal set a relatively low threshold of $600 for reporting total transactions within a calendar year. As a result, millions of users could have received a 1099-K form, potentially complicating tax filings for casual users and raising privacy considerations. Many stakeholders voiced concerns that this change would blur the lines between personal and business transactions and create a substantial increase in IRS reporting and enforcement.
Due to the significant backlash, the IRS decided to put the rollout on hold for the 2023 tax season, effectively delaying the implementation. Instead, they described 2023 as a "transition year" to gather further feedback and refine the process.