N-2024-85: Revised Timeline Regarding Implementation of Amended Section 6050W(e)

Notice 2024-85 provides that calendar years 2024 and 2025 will be regarded as the final transition period for purposes of IRS enforcement and administration of the minimum reporting threshold for Form 1099-K, Payment Card and Third Party Network Transactions. Under Notice 2024-85, a third party settlement organization (TPSO) will be required to report payments in settlement of third party network transactions with respect to a participating payee when the amount of total payments for those transactions is more than $5,000 during calendar year 2024; more than $2,500 during calendar year 2025; and more than $600 during calendar year 2026 and after. Notice 2024-85 also provides that for calendar year 2024, the IRS will not assert penalties under section 6651 or 6656 for a TPSO’s failure to withhold and pay backup withholding tax during the calendar year.

Notice 2024-85 will be in IRB: IRB 2024-51, dated December 16, 2024.

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