Part 3/8:
Previously, the IRS mandated that if a taxpayer exceeded 200 transactions or had more than $20,000 in gross payments, they would receive a 1099-K. This higher threshold often meant fewer forms were issued, avoiding unnecessary confusion for many small-scale users. The shift to a $600 threshold aimed to close loopholes but also led to a dramatic increase in the volume of reports, with estimates suggesting the IRS could receive approximately 12 million 1099-K forms during the 2021 tax season alone.