All articles tagged with #tax reporting
The Treasury and IRS proposed new regulations to clarify backup withholding requirements for third-party settlement organizations, setting a threshold of over $20,000 in reportable transactions and more than 200 transactions before withholding is required, reflecting changes from the One, Big, Beautiful Bill.
A record 67.8 million Americans are expected to bet $23.1 billion on Super Bowl 58, with the IRS expecting a cut of any winnings. All winnings must be reported for tax purposes, and it may be possible to deduct losses, but only up to the amount of winnings. Professional gamblers face different tax rules, and currently, 38 states and Washington, D.C., have legal sports betting markets.
The IRS has announced a delay in implementing new reporting requirements for users of payment apps such as Venmo and Cash App. Originally, users who made $600 or more selling goods and services would have had to report those transactions to the IRS, but now separate tax forms will be sent for taxpayers who receive over $20,000 and make over 200 transactions. The basic reporting threshold will be increased to $5,000 in 2024. The delay is due to taxpayer confusion and the need for additional time to effectively implement the new requirements. Lawmakers from both parties have celebrated the delay and called for a reevaluation of the provision in the American Rescue Plan.
The IRS has implemented a new rule that lowers the tax reporting thresholds for users of e-commerce platforms, including ticket reselling websites like Ticketmaster and StubHub. Under the new rule, platforms will be required to report sellers' proceeds of $600 or more to the IRS, regardless of whether they made a profit. This change may cause confusion among concertgoers and sports fans who have bought and sold tickets in 2023. Lawmakers are considering changes to the reporting threshold, but it is uncertain whether any changes will be made before the 2023 tax season.
The European Council has approved the eighth version of the Directive on Administrative Cooperation (DAC8), which extends tax reporting requirements to include transfers of crypto assets. The new DAC8 adheres to the Crypto-Asset Reporting Framework (CARF) and OECD reporting standards. Crypto asset service providers (CASPs) are required to collect information on crypto asset transfers of any amount to ensure traceability and identify suspicious transactions. DAC8 strengthens the European Union’s Anti-Money Laundering and Countering Terrorism Financing (AML/CFT) rules and proposes the creation of a new European AML body.
The IRS has clarified that all business income must be reported, regardless of whether you receive Form 1099-K or not. The agency has also provided guidance on how to handle mistakes on the form, including contacting the issuer directly to correct errors or zeroing out the income on two lines of Schedule 1 with the description "Form 1099-K Received in Error" for both. Taxpayers who received Form 1099-K after selling personal items at a loss should report profits as a capital gain on Form 8949 and Schedule D.