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1099-K Requirements are postponed for 1 yr


Not all news from the IRS is bad. Here's some good news...


The IRS has delayed for 1 year, new rules requiring 1099-Ks for all taxpayers. If you paid more than $20,000 during 2022 to contractors via credit cards from more than 200 transactions, then you will need to issue a 1099-K.


Subsequently, the IRS issued updated 1099-K FAQs in Fact Sheet 2022-41. Small businesses, sole proprietors and individuals may want to prepare for next year by reviewing these FAQs.


1099-K now includes payments made via Venmo, Zelle and similar services.” Currently, using Zelle and similar services may not get you a 1099, but it does not negate the responsibility for paying taxes on all business proceeds regardless of payment mechanism. And the IRS may want to address Zelle and similar payments if it audits your business.


If you are a client of Sage Solutions, we help you with all 1099 filings. Because we strive to stay up to date with the IRS changes, we will inform you whether or not you will need to file and which kind of form needs to be filed.


As a regular monthly bookkeeping client, we watch for new vendors throughout the year. When you pay a new vendor without getting a W9 first, we will see it and can request your new vendor fill out a w9. All we need is their email address and they will be sent a secure link where they can fill out their w9 info. It will stored in a secure location until it's needed for 1099 filing.


If you are not a regular monthly bookkeeping client, we do offer 1099 filings by the hour. Ask me for more info.


Learn more about Sage Solutions by visiting our website at www.sagesolutionsinc.net

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