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Once the full threshold adjusts back to $600, many users could receive IRS forms reporting their transactions, which necessitates careful record-keeping.
There's concern about third-party platforms' ability to distinguish between personal and business transactions, especially since many payments are made between friends and family or for personal reasons.
Personal vs. Business Transactions: The IRS Guidance
The IRS clearly states that personal transactions such as gifts, sharing household expenses, or casual payments are not taxable and should not be reported on 1099 forms. However, transactions involving the sale of goods or services for profit, even if processed via personal accounts, may generate a reportable event.