@Melkor wrote:
So even though I have transactions above $600 total, these will not cause a 1099-K to be issued? The law has changed hence why they had the open forum.
According to a different post, PayPal will only issue 1099-Ks for business accounts and not personal accounts. I have not checked to see if this is true. If you do get a 1099-K, that doesn't mean the money is taxable, but you do have to deal with the 1099-K. There are 2 procedures you can use.
1. Leave the 1099-K off your return. File by mail and include a written explanation of why you left off the 1099-K.
2. Enter the 1099-K as "other income." Then create a negative item of other income to offset the 1099-k. The IRS may as later for an explanation of the negative item, you would reply with a letter of explanation and a copy of your records.
The IRS may or may not create a new procedure for 2022 since so many more people will be getting 1099-Ks. We haven't seen the forms and instructions for 2022 yet.
