In IR-2025-107 and FS-2025-08, the IRS explained that the reporting threshold for third-party settlement organizations is back to the old one: $20,000 in gross payments and more than 200 transactions in a calendar year, with both conditions met. The lower $600 threshold from the American Rescue Plan Act and the planned phase-in through $5,000 and $2,500 were repealed as if they never existed. The same law changed the thresholds for 1099-NEC and 1099-MISC.
A trap for non-residents
Not receiving a 1099-K does not exempt you from reporting. A foreign-owned single-member LLC still files Form 5472 with a pro-forma 1120, and the owner files a 1040-NR if required; a C-Corp files a 1120. The threshold only affects whether the payment service sends you a form, not your obligation to report income.
Not legal or tax advice. Rules change, so check primary sources or ask a qualified advisor before you decide.
