new 1099-K rules

[birdman42]

To be clear, it isn't the IRS that issues 1099-Ks, it's the payer (or, in this case, the third party payment processor). The information gets reported to the IRS at the same time it gets reported to you.

So if, for example, you sell 5 cards for $200 each and get paid through PP for each, that's $1000 and will be reported. If you sell a single card for $500 through an AH, then they do not need to issue a 1099-K. (They can choose to do so.)

It appears non-commercial transactions will be included; there's no mention of a distinction in the IRS instructions for completing the form. In one way this is going to be a shock to some people. We have a church client that receives most of its monthly contributions through Zelle. On the other hand, if there were a distinction we might see parties such as PP clamping down on the use of F&F. I see the PP page mentioned above, but there's no mention of F&F transactions being exempt. And again, the IRS instructions for the form don't appear to allow for an exemption for non-commercial transactions. I'd really, really like to be wrong about this, but I believe I'm correct.

Bill