Form 1099-K Deadline for the 2023 Tax Year

Updated on November 23, 2023 - 10.00 AM by Admin, TaxBandits

The IRS Form 1099-K is used to report payments processed by payment settlement entities (PSEs). Simply put, if you use a service to process credit or debit card transactions, that service is a payment settlement entity, and the amount of those types of transactions for the year should be reported on Form 1099-K.

This includes reporting income received from electronic payments such as credit cards, debit cards, PayPal, Uber, Lyft, and other third-party payers. This article will take a deeper dive into the deadline of Form 1099-K for the 2023 Tax Year.

Table of Contents

1. What is a Form 1099-K?

Form 1099-K is an IRS tax form used by payment settlement entities to report online payments under the following conditions:

  • Payments made through payment cards (Debit cards, Credit cards, or stored value cards like gift cards).
  • Payments of $600 or more made through third-party networks such as payment apps (PayPal, Venmo, Cash app, etc.) or marketplaces, irrespective of the transaction limit.

2. What are the Changes to Form 1099-K for 2023 Tax Year?

IRS has delayed the new $600 threshold for reporting Form 1099-K. So, for the 2023 tax year, payment apps and online marketplaces will stick to the old rules. Payment settlement entities will only send Forms 1099-K to taxpayers who received more than $20,000 and had over 200 transactions during the year.

3. When is the deadline to file Form 1099-K for 2023 Tax Year?

Like other 1099 forms, the 1099-K follows the same deadline. Here is the deadline to file Form 1099-K for the 2023 tax year.

Filing Type Due Date
Recipient copy Deadline January 31, 2024
Paper filing Deadline February 28, 2024
E-filing Deadline April 01, 2024

Note: If any deadlines fall on a weekend or Federal holiday, the deadline automatically moves to the next business day.

Get Started Today with TaxBandits to File Form 1099-K before the deadline to avoid late filing penalties. E-file Now

4. What are the Penalties for Late Filing of Form 1099-K?

If you fail to file Form 1099-K by the deadline, the IRS imposes penalties that vary based on the lateness of your return. Here are the penalties for late filing for the 2023 tax year:

  • Filed within 30 days: $60 per form, with a maximum of $630,500 per year ($220,500 for small businesses).
  • Filed after 30 days and before August 1: $120 per form, with a maximum of $630,500 per year ($220,500 for small businesses).
  • Filed after August 1: $310 per form, with a maximum of $3,783,000 per year ($1,261,000 for small businesses).
  • Intentional Disregard: $630 per form with no maximum limits.

5. What are the methods to file Form 1099-K for the 2023 tax year?

Form 1099-K can be filed either by paper filing or e-filing methods. The IRS recommends electronic filing of the 1099-K returns, as this will speed up the processing time of the returns, and the returns will be transmitted to the IRS at a quicker rate!

6. Facilitate Automation of 1099-K Using TaxBandits API!

Software providers and bulk filers can integrate TaxBandits API to automate the e-filing and distribution of 1099-K efficiently within their software. Learn More

7. How to e-file Form 1099-K with TaxBandits?

E-filing Form 1099-K for the tax year 2023 is easy with TaxBandits! Here’s the step-by-step process of e-filing Form 1099-K with TaxBandits

  • Enter the Form 1099-K Details
  • Review the Form 1099-K Details
  • Transmit the Form to the IRS and State
  • Distribute Recipient Copy (Postal or Online Access)

Success Starts with TaxBandits

The Smart Business Owners Choice

Create a Free Account