On March 11, 2021, the American Rescue Plan Act was passed. Among many other provisions, this bill dramatically changed the reporting requirements for Form 1099-K: Payment Card & Third-Party Network Transactions. Previously, payment processing companies were not required to file an informational 1099-K reporting gross transactions unless there were at least 200 transactions AND at least $20,000 in payments.

Beginning in 2022, the threshold has been lowered to $600 in gross payments and ONE transaction. With the growth of peer-to-peer payment platforms like Venmo & Zelle and casual online resale marketplaces such as Facebook marketplace, the new reporting thresholds have the power to disrupt the lives of taxpayers and tax pros, after several turbulent tax seasons in a row.

This webinar will explore best practices for your tax practice and explore tools to help prevent your taxpayer from being audited.

Learning Objectives:

• Evaluate the changes to the 1099-K reporting requirements and how companies are responding


• Recognize best practices to update your tax prep client onboarding process


• Determine the role IRS transcripts and transcript software can play in catching unreported income, saving your client major headaches