IRS Form 1099 K Deadlines for the 2023 Tax Year
Form 1099-K Deadline for the 2023 Tax Year
Updated on September 12, 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, Payment Card and Third Party Network Transactions, is an IRS information return used to report certain payment transactions with the goal of improving voluntary tax compliance.
Every Payment Settlement Entity (PSE) must file 1099-K for each participating payee's reportable payment transactions. Reportable payment transactions include payment card transactions or third-party network transactions. The PSE includes any banks, organizations, or third-party settlement organizations that transfer funds or payments to the payee on behalf of the payee's client.
2. What are the Changes to Form 1099-K for 2023 Tax Year?
The IRS has lowered the 1099-K threshold for the 2023 tax year, from totals exceeding $20,000 to exceeding $600, regardless of the total number of transactions. Learn more.
3. When is the deadline to file Form 1099-K for 2023 Tax Year?
The deadline to file Form 1099-K will slightly vary from other IRS 1099-series forms.
The 1099-K deadlines are as follows:
| Filing Type | Due Date |
|---|---|
| Sending Recipient Copy | January 31, 2024 |
| By IRS e-filing method | April 01, 2024 |
| By IRS paper filing method | February 28, 2024 |
4. Penalty for the late filing of Form 1099-K?
Generally, the IRS will charge a penalty if you fail to file your Form 1099-K on time and cannot show any reasonable cause for the failure to file. In addition, you could be imposed with an additional penalty charge if you fail to provide copies of the form to payees on time.
Note: If the designated person fails to timely file the return, the entity responsible for filing is liable for applicable penalties under sections 6721 and 6722.
To know more about 1099-K penalties, Visit: https://www.taxbandits.com/form-1099-series/1099-penalties/
5. What are the methods to file Form 1099-K for the 2023 tax year?
Filing Form 1099-K for the 2023 tax year can be done by both e-filing as well as paper filing. Based on the filing method you choose, the filing deadline varies. For example, if you opt for paper filing, send the form to the IRS on February 28, 2024. If you e-file Form 1099-K, the deadline will be April 01, 2024.
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. 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)
Helpful Resource for Form 1099-K
