Small business owners across the country breathing a collective sigh of relief. For the second year in a row, the IRS has postponed a rule change for filers who receive business income through third party platforms like Venmo, Cash-app, Etsy, Poshmark and Airbnb.
The IRS made the announcement Tuesday, and cited concern over potential taxpayer confusion and the need to make it easier for all parties to comply with the change.
Many small business owners aren’t happy about the change and raised concerns over the additional paperwork burdens it would create.
Once in place it will trigger a 1099-K form for $600 payments; even if that incomes stems from one transaction.
For this tax year, the reporting rule that has been in effect for years still applies. That means third-party payment platforms must report gross business income only if a person conducted more than 200 business transactions and earned more than $20,000.
The IRS defines a business transaction as a payment for a good or service, including tips. It does not inclu
