Part 2/8:
Under the new provisions, payment platforms are typically required to issue a 1099-K form to users when their transactions surpass $600 in a calendar year. This lower threshold was part of the American Rescue Plan Act, designed to increase tax compliance by capturing more income from gig economy workers and small sellers. However, for the 2022 tax year, the IRS has decided not to enforce this reduced threshold, instead allowing platforms to continue reporting under the previous standard.