Reality Sheet 2025-08 consists of up to date regularly requested questions relating to the greenback threshold for submitting Kind 1099-Ok beneath the OBBB.
The OBBB retroactively reinstated the reporting threshold in impact previous to the passage of the American Rescue Plan Act of 2021 (ARPA). Third occasion settlement organizations are usually not required to file Types 1099-Ok except the gross quantity of reportable cost transactions to a payee exceeds $20,000 and the variety of transactions exceeds 200.
Tax professionals ought to remind their purchasers that they could be issued Types 1099-Ok in the event that they acquired sure funds. The requirement to file a Kind 1099-Ok might be triggered when funds are acquired for items or providers by means of a cost settlement entity.
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