IRS suspends 3rd Party Payer reporting for 1 year


Resident Redneck
Staff Member
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The IRS has suspended 3rd Party Payer Reporting for Tax Year 2022. But it will be in effect for 2023:

What this means is if you sell stuff from your attic on ebay and it is in excess of $600 (old threshold was $20,000) in a year, Ebay or Paypal or Venmo, will be sending you a 1099-K for the gross amount. So if you don't keep good records, you could owe tax on the total amount. The reporting for 2022 caught me off-guard, but I will be prepared for 2023.

The law only applies to sales, not for sending friends and family money. I know some people trying to get around paying Paypal fees by saying it is for friends, but I would never do that because you lose the buyer protections.

I created a Google Sheets where I list the date, a description, amount and my basis, or what I paid. If I don't know what I paid, I try to find an MSRP.
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