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This means taxpayers should still report all income accurately on their tax returns, regardless of whether they receive a 1099-K form. The IRS has made it clear that income from business activities is taxable regardless of whether the corresponding form is received or not. Ignoring income because a notice is absent could lead to penalties or audits.
Implications for the 2023 Tax Filing Season
The postponement of the new reporting threshold means that for the 2022 tax year, the old standards apply. For many, this simplifies things, avoiding the paperwork chaos that the lower threshold could have caused. However, taxpayers should remain vigilant and diligent in reporting all income correctly.