The IRS clarified that under the One, Big, Beautiful Bill, third-party payment processors must file Form 1099-K only if a payee receives over USD 20,000 and more than 200 transactions, reinstating the pre-ARPA threshold.
The US Internal Revenue Service (IRS) released a notice on 23 October 2025, in which it issued frequently asked questions in the 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 prior to the passage of the American Rescue Plan Act of 2021 (ARPA) so that third-party settlement organisations are not required to file Forms 1099-K unless the gross amount of reportable payment transactions to a payee exceeds USD 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.
