The <a href="https://www.cryptoknowmics.com/news/irs-develops-key-us-tax-language-to-include-nfts">IRS</a> is <a href="https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-third-party-payment-platforms-forms-1099-k" target="_blank" rel="nofollow noopener">postponing</a> until next year the implementation of new rules that mandate third-party settlement companies like <a href="https://www.cryptoknowmics.com/news/consensys-partners-with-paypal-to-offer-easy-way-to-buy-crypto">PayPal</a> and Venmo to record payments that total more than $600 in cumulative transactions.
<h2>IRS Delays Payments &amp; Marks 2022 Transition Period</h2>
In a statement that referred to the current year as a "transitional phase,", IRS Commissioner Doug O'Donnell stated that the extra time will significantly lower confusion during the forthcoming 2023 tax filing period. Furthermore, it will provide additional time for taxpayers to arrange and recognize the new reporting standards.

The law, included in the American Rescue Plan of 2021, drastically reduced the bar for company tax reporting from the prior level of over 200 transactions per year, surpassing an estimated amount of $20,000 to just $600 annually.
<h2>The Objective of the Reporting System</h2>
According to the IRS, the new reporting requirements would take effect on January 1, 2023. The statute is not designed to monitor personal transactions, such as splitting the cost of a vehicle trip or meal, giving gifts for birthdays or holidays, or paying a family member or someone for a household expense, the IRS added. The modification under the statute is quite significant since tax compliance is higher when amounts are entitled to information reporting.
<h2>A Warning by IRS</h2>
The IRS advised caution in order to assist in the assurance that 1099-Ks are only delivered to taxpayers who should obtain them. The IRS stated that until final rules are released, brokers would not be obliged to record any extra information related to the disposal of digital assets. This comment was made in a separate announcement on transition guidelines for broker reporting on digital assets. The government stated that taxpayers still need to declare revenue derived from transactions involving digital assets and that dealers still expect to abide by current rules and regulations.

IRS to Postpone $600 Payments System Reporting Threshold

IRS is postponing the implementation of new rules that mandate third-party settlement companies to record payments over $600 in cumulative transactions.

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IRS to Postpone $600 Payments System Reporting Threshold

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