IRS Announces Delay In New $600 1099-K Tax Reporting Threshold

December 23, 2022

eBay is pleased to report that the Internal Revenue Service has announced a one-year delay of the new $600 tax reporting threshold. As a result of this delay, which follows over a year of eBay Government Relations advocacy on behalf of the eBay community, only sellers who: 1) exceed the previous threshold of $20,000 and 200 transactions, 2) that were subject to backup withholding or, 3) whose states of residence have a lower reporting threshold will receive a Form 1099-K.

"The IRS and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan," said Acting IRS Commissioner Doug O'Donnell. "To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes. The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements."

The American Rescue Plan of 2021 changed the 1099-K reporting threshold from $20,000 and 200 transactions down to just $600 and a single transaction. This lower threshold would force millions of Forms 1099-K to be issued to casual sellers of used personal goods, the sale of which generally does not generate taxable income.

The eBay Government Relations team would like to thank all of the members of our Main Street community who made their voice heard on this important issue. While a one year delay is welcome news for millions of online sellers, Congress will need to permanently change the reporting requirements to prevent mass confusion and overreporting of income in the future. eBay will continue its work toward a permanent solution on behalf of the online selling community. 

More information on 1099-K reporting for eBay sellers can be found here. Additional guidance for sellers related to the delay will be provided when available.