Hello,
There is a lot of confusion about the new rule. The new threshhold rule of $600 is only for goods and services transactions, so this doesn't include paying for your family and friends. So, the Third-Party Settlement Organizations (TPSOs), like PayPal and Venmo will have to report goods and services transactions made by customers with $600 or more in annual gross sales on 1099-K forms. Currently, a 1099-K is only required when a user receives more than $20,000 in goods and services transactions and more than 200 goods and services transactions in a calendar year.
Let us know if you have any additional question.
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