An official website of the U.S. Gov An official website of the U.S. GovMost taxpayers likely didn’t receive Form 1099-K, Payment Card and Third Party Network Transactions, this filing season for the sale of goods or services through a third-party network, but things will change. In 2021, Congress passed the American Rescue Plan Act of 2021 (ARPA), which substantially lowered the filing threshold in IRC § 6050W(e) for issuing Form 1099-K from a total amount exceeding $20,000 from over 200 transactions to gross payments exceeding $600 with no minimum transaction requirement. The IRS delayed implementation of this rule in 2022 and again in 2023. However, this reporting delay is temporary, as the IRS plans on using a phased-in approach starting in 2024. However, whether you receive a Form 1099-K or not, the income from the sales of goods or services is taxable, and you will need to include it on your tax return. In 2025, the IRS will require third-party payment networks to send taxpayers Form 1099-K if their transactions meet the new $5,000 threshold set by the IRS for transactions in 2024.
As a result of taxpayer confusion, lack of clear guidance, concerns about the existing backlog, and impact on the upcoming filing season industry and stakeholders urged the IRS to postpone the implementation of the new reporting requirements of the Forms 1099-K. Good news: The IRS listened, and on Friday, December 23, the IRS issued Notice delaying the requirement for electronic payment networks to report transactions over $600 to the IRS on a Form 1099-K, Payment Card and Third Party Network Transactions, until 2024.
IRS phone service was inadequate prior to the pandemic and spiraled from there, with calls reaching an all-time high and level of service (LOS) falling to an all-time low. Inadequate phone service disadvantages taxpayers, harms tax compliance, and causes frustration and exasperation. I have concerns this upcoming filing season may be just as difficult.
When disaster strikes, taxpayers are already dealing with enough. Rebuilding homes, replacing belongings, and caring for loved ones should take priority over deciphering confusing IRS notices. That’s why the National Taxpayer Advocate applauds Congress for enacting the Disaster Related Extension of Deadlines Act (H.R. 1491) a long-overdue reform that strengthens taxpayer rights, including the right to pay no more than the correct amount of tax, and ensures fairness in IRS collections. On December 26, 2025, the President signed the bill into law, marking a meaningful step for forward for taxpayers affected by disasters and a reminder that smart, targeted fixes can make a real difference.
Taxpayers face economic hardship if the payments they must make toward their tax debt would leave them unable to pay their reasonable basic living expenses such as food, housing, utilities, and healthcare. Although existing laws, regulations, and policies include protections for taxpayers in these circumstances, those protections are helpful only when taxpayers and IRS assisters know to check if the taxpayer qualifies for that relief. Taxpayers may enter into payment arrangements that are not sustainable, exacerbating their financial difficulties and leaving them more vulnerable to collection actions. This problem is particularly acute for low-income taxpayers, many of whom already struggle to make ends meet. Without proactive notification from the IRS, these taxpayers may remain in the dark about alternatives that could help them manage their debt and avoid economic distress.
The American Bar Association will highlight the importance of pro bono services with its annual National Celebration of Pro Bono during Pro Bono Week October 20-26. Derived from the Latin phrase pro bono publico, meaning “for the public good,” pro bono embodies the essence of selflessness and community service. The American Bar Association’s Standing Committee on Pro Bono and Public Service created the week in 2009 to celebrate pro bono work with an annual observance that recognizes the impactful work of volunteer attorneys providing free legal services to underserved communities, raises awareness about pro bono opportunities, and highlights the unmet legal needs of low-income individuals. The American Bar Associates encourages legal organizations across the country to plan events and share them at celebrateprobono.org.
Amended Return
You received various notices or letters from the IRS requesting payment for the balance you owe, and the debt remains unpaid. Since you have a balance owing, the IRS is continuing with its collection process by issuing one of the following notices that contain the right to a Collection Due Process Hearing (CDP):
Properly classify digital cash application payments sent or received from others for something other than business transactions.
TAS Pre-Filing Season Awareness Event. Several dates and times available. Please check back often for updates.
Before you file your federal tax return join us at a local event– it’s free! Let your Local Taxpayer Advocate teach you important tax tips to avoid tax processing & refund filing delays. Follow these tips so you can file with confidence.
If you cannot attend an event you can view all TAS Tax Tips online!
Join us at one of our Pre-Filing Season Awareness Events before you file your federal tax return – it’s free! Or visit our website to see all our Tax Tips.
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