Third-party settlement organizations are not required to file Forms 1099-K
The Internal Revenue Service today issued frequently asked questions in Fact Sheet 2025-08 regarding the dollar threshold for filing Form 1099-K under the One, Big, Beautiful Bill.
The OBBB retroactively reinstated the reporting threshold in effect before the passage of the American Rescue Plan Act of 2021 (ARPA) so that third-party settlement organizations are not required to file Forms 1099-K unless the gross amount of reportable payment transactions to a payee exceeds $20,000 and the number of transactions exceeds 200.
Form 1099-K is an IRS information return used to report certain payments to improve voluntary tax compliance. The requirement to file a Form 1099-K can be triggered when payments are received for goods or services through a payment settlement entity.
More information about reliance is available on IRS.gov.
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