FILING THRESHOLDS:

On 21 November, the IRS announced that the 1099-K filing threshold will remain at US$20,000 and 200 transactions for tax year 2023.

If the gross amount of total reportable payments exceeds US$20,000 and the total number of such transactions exceeds 200 in a calendar year – and they're based in the US or are a US taxpayer – payees should expect to receive a 1099-K, either through paperless delivery or paper post.

EARLIER ACCESS TO EDITABLE TAX FORMS:

Draft 2023 tax forms are available in your Dashboard as of August 2023. Platforms can edit these forms straight away to resolve any missing or inaccurate information.

NEW METHODS TO CREATE OR EDIT TAX FORMS:

• Deltas: Platforms can now use Deltas to add (or subtract) values from the initial form totals from Stripe. This allows you to report the totals for transactions outside of Stripe, without having to add up the values.
• Standalone tax forms: Platforms can now create Standalone tax forms for entities that might not have a Stripe connected account.

IMPROVED SPLITTING AND GROUPING OF TAX FORMS:

• Pre-filed splits: In previous tax years, 1099 forms could only be split after the initial filing. This year, platforms can pre-file splits after 1 January from the Tax Reporting 1099 dashboard.
• Improved TIN aggregation: forms that share the same TIN will now have their totals aggregated to determine filing eligibility at all times, even after a platform has updated the information on them. We've also added a "Forms grouped with" filter to locate all forms aggregated with a given form.

TAX FORM DELIVERY IMPROVEMENTS

• Delivery status visibility: Platforms can now view and filter by both postal and e-delivery statuses directly in the Tax Reporting 1099 dashboard.
• Tracking Stripe outreach: Platforms that opt in for e-delivery through Stripe Express, can now track the status of any Stripe outreach to their connected accounts directly in the Tax Reporting 1099 dashboard.
• Addressing missing email addresses: This tax season we've provided a number of new tools to manage missing or incorrect emails. Platforms can now filter for any connected accounts with missing emails and add them to allow e-delivery. Platforms may see a banner on the Tax Reporting 1099 dashboard if more than 25% of connected accounts have missing emails. Emails can be updated via the API, bulk updated via the Communication settings page, or edited directly in the Payee Details section of the Tax Reporting 1099 dashboard.

Looking for more information on new tax form features? Take a look at the link below to learn more about the new features we're offering this year!

What's new for tax year 2023

This article is neither legal advice nor tax advice. We recommend that you speak to your tax advisor if you have any questions or concerns related to tax reporting.