FL - Guidance issued on catastrophic event property damage
Florida provides guidance on catastrophic event property damage for property tax purposes. Topics discussed include the payment of property taxes, […]
Read MoreThe IRS announced a delay in reporting thresholds for third-party settlement organizations (TSPOs). As a result of this delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan Act of 2021 ( P.L. 117-2).
Code Sec. 6050W requires payment settlement entities to file an information return for each calendar year for payments made in settlement of certain reportable payment transactions. The annual information return must set forth the (1) name, address, and taxpayer identification number (TIN) of the participating payee to whom payments were made; and (2) gross amount of the reportable payment transactions with respect to that payee. The returns must be furnished to the participating payees on or before January 31 of the year following the calendar year for which the return was made. Further, the returns must be filed with the IRS on or before February 28 (March 31 if filing electronically) of the year following the calendar year for which the return was made.
A TPSO will not be required to report payments in settlement of third party network transactions with respect to a participating payee unless the gross amount of aggregate payments to be reported exceeds $20,000 and the number of such transactions with that participating payee exceeds 200. This condition applies to calendar years beginning before January 1, 2023. The Service will not assert penalties under Code Sec. 6721 or 6722 for TPSOs failing to file or failing to furnish Forms 1099-K unless the gross amount of aggregate payments to be reported exceeds $20,000 and the number of transactions exceeds 200.
For returns for calendar years beginning after December 31, 2022, a TPSO would be required to report payments in settlement of third party network transactions with any participating payee that exceed a minimum threshold of $600 in aggregate payments, regardless of the number of such transactions. The delay does not affect requirements of Code Sec. 6050W that were not modified by the American Rescue Plan Act. Taxpayers that have performed backup withholding under Code Sec. 3406(a) during calendar year 2022 must file a Form 1099-K, Payment Card and Third-Party Network Transactions, with the IRS and furnish a copy to the payee if total payments to and withholding from the payee exceeded $600 for the calendar year.
Florida provides guidance on catastrophic event property damage for property tax purposes. Topics discussed include the payment of property taxes, […]
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