Part 3/9:
Recently, the IRS announced that it will once again delay the enforcement of the new law, emphasizing that the regulation is not outright canceled but postponed while the agency works to refine its approach. IRS Commissioner Danny Werfel highlighted that the agency had spent considerable time consulting stakeholders and recognized that additional time was needed to properly implement the law.
The "Phase-In" Approach: Raising the Threshold
Instead of immediately enforcing the $600 threshold, the IRS has proposed a phased approach:
- Tax Year 2024: The threshold will be increased to $5,000 for reporting purposes. This means that, for now, transactions below this amount will not trigger a 1099-K.