Notice 2023-10, 2023-3 I.R.B. 403 (January 17, 2023), delayed implementation of
SECTION 3. TRANSITION
Internal Revenue Bulletin 2024-51 · 2026-10-03 edition · updated 2026-10-04 · United States
PERIOD FOR ENFORCEMENT AND ADMINISTRATION WITH RESPECT TO CALENDAR YEARS 2024 and 2025
Calendar year 2024 will be regarded as a further transition period for purposes of IRS enforcement and administration of the information reporting requirements under section 6050W(e), as amended by the ARP. For calendar year 2024, a TPSO is not required to report payments in settlement of third party network transactions with respect to a participating payee unless the gross amount of aggregate payments to be reported exceeds $5,000, regardless of the number of such transactions. The IRS will not assert penalties under section 6721 or section 6722 for a TPSO for failing to file or failing to furnish Forms 1099-K with respect to a payee unless the gross amount of aggregate payments to be reported exceeds $5,000, regardless of the number of such transactions.
In addition, calendar year 2025 will be regarded as the final transition period for purposes of IRS enforcement and administration of the information reporting requirements under section 6050W(e). For calendar year 2025, a TPSO is not required to report payments in settlement of third party network transactions with respect to a participating payee unless the gross amount of aggregate payments to be reported exceeds $2,500, regardless of the number of such transactions. The IRS will not assert penalties under section 6721 or section 6722 for a TPSO for failing to file or failing to furnish Forms 1099-K with respect to a payee unless the gross amount of aggregate payments to be reported exceeds $2,500, regardless of the number of such transactions.
For Forms 1099-K for calendar years beginning after December 31, 2025, a TPSO is required to report payments in settlement of third party network transactions with respect to any participating payee that exceed a minimum threshold of $600 in aggregate payments, regardless of the number of such transactions.
The IRS will not regard calendar year 2024 or 2025 as a transition period with respect to the requirements of section
December 16, 2024 1350 Bulletin No. 2024–51
6050W that were not modified by section 9674(a) of the ARP, such as provisions relating to payment card transactions.
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