New 1099-K Reporting For Gig Economy

People who have side businesses should be aware that starting in 2022, there is a new reporting requirement to issue a 1099-K to anyone who received more than $600 regardless of the number of transactions from services such as VENMO or ZELLE or anyone who processes payment for you. What this means is that next year, in 2023, you will be issued a 1099-K reporting the payments you’ve processed for your business. The information on this form MUST be reported on your Schedule C of your tax return. Failure to report this income WILL result in a letter audit from the IRS. Remember to keep all of your expense receipts for your business expenses. We specialize in small business taxes and can help you get on track and stay on track with your reporting requirements.