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IRS: Never mind the myths; know the facts about receiving a Form 1099-K in 2024

IRS: Never mind the myths; know the facts about receiving a Form 1099-K in 2024

WASHINGTON — To help taxpayers with filing, the Internal Revenue Service today debunked some common myths to help taxpayers understand what to do with Form 1099-K.

Following feedback from partners and to help avoid taxpayer confusion, the IRS announced in Nov. 2023, that the reporting threshold for Form 1099-K, Payment Card and Third-Party Network Transactions, would not change for 2023. The reporting threshold requirements remain over $20,000 in payments and over 200 transactions.

The IRS continues to see misinformation circulating about why taxpayers may or may not have received a Form 1099-K. Here are some common scenarios involving these forms. More information is also available at for What to do With Form 1099-K and frequently asked questions.

1099-K facts vs myths

Myth: People will get a Form 1099-K from friends and family sending them personal payments.

Fact: Payments from friends and family should generally not be reported on a Form 1099-K. Form 1099-K reports payments for goods or services and should not report personal payments like rent, dinner, travel and other gifts or reimbursements gifts, no matter the amount. Generally, in payment apps, the default is personal payments unless the sender designates that they’re purchasing goods or services, or it is designated a business account.

Myth: If taxpayers didn’t receive a Form 1099-K, they don’t have to report income.

Fact: According to federal law, all income is taxable unless it is specifically excluded by tax law. Taxpayers should report any profits from selling goods or services, regardless of if they receive a Form 1099-K.

Myth: Individuals won’t get a Form 1099-K if they sold goods or services under the $20,000 and 200 transactions payment threshold set for 2023 and previous tax years.

Fact: The 2023 federal reporting threshold of over $20,000 and 200 transactions is a reporting requirement, but companies may still send a Form 1099-K for goods or services payments that are less than that amount. Payment apps and marketplaces that have held backup withholding for a payee during calendar year 2023 must file a Form 945 and a Form 1099-K. Also, their state may have a lower reporting threshold, which could result in receiving a Form 1099-K, even if the total gross payments they received in the year did not exceed the federal reporting threshold.

Myth: Taxpayers owe taxes on the gross amount reported on the Form 1099-K.

Fact: The form provides the gross, or total amount of payments individuals got per app or marketplace. Just because a payment is reported on a Form 1099-K does not mean it is taxable. Taxpayers will need to use the form and other records to determine their actual tax liability when they file their tax return.

More information is available to help determine an individual’s tax obligations at What to do With Form 1099-K.

Myth: People can only get a 1099-K if they’re running a business.

Fact: People may receive a Form 1099-K from payment apps or online marketplaces they used to sell goods or services, or accepted payments from a bank card. See Form 1099-K FAQs on Fact Sheet 2024-03 for more information.

Myth: People don’t need to do anything with their Form 1099-K.

Fact: Individuals should use the information on the Form 1099-K with their other tax records to determine their correct tax owed. See Understanding your Form 1099-K and visit the Form 1099-K frequently asked questions for more information.

Someone who receives a Form 1099-K when they shouldn’t have should take these steps.

Myth: There’s nothing available to help individuals understand their Form 1099-K.

Fact: The IRS has a variety of sources to help people understand their form and report their taxes accurately. See Understanding Your Form 1099-K, What to do with Form 1099-K and Form 1099-K Frequently Asked Questions.

Tax Time Guide: IRS enhances ‘Where’s My Refund?’ tool for 2024 filing season

Tax Time Guide: IRS enhances ‘Where’s My Refund?’ tool for 2024 filing season

WASHINGTON — With millions of tax refunds going out each week, the Internal Revenue Service reminded taxpayers today that recent improvements to “Where’s My Refund?” on provide more information and remains the best way to check the status of a refund.

The “Where’s My Refund?” tool provides taxpayers with three key pieces of information: IRS confirmation of receiving a federal tax return, approval of the tax refund and issuing date of the approved tax refund. Information for returns from tax years 2023, 2022 and 2021 is available.

During this busy part of filing season, millions of taxpayers are anticipating refunds. In the second of the weekly Tax Time Guide series, the IRS highlights important details about “Where’s My Refund?” that can help taxpayers quickly get the information they need without calling the IRS.

The improvements to the heavily used tool follow Inflation Reduction Act funding, which is providing for a variety of IRS technological advances and upgrades designed to help taxpayers and transform agency operations.

“Where’s My Refund?” enhancements
In filing season 2024, taxpayers will benefit from important updates that reduce the need for many taxpayers to call the IRS and include:

  • Messages with detailed refund status in plain language.
  • Seamless access on mobile devices and with the IRS2Go app.
  • Notifications indicating whether the IRS needs additional information.

How to use “Where’s My Refund?”
To use “Where’s My Refund?”, taxpayers must enter their Social Security number or Individual Taxpayer Identification number, filing status and the exact whole dollar amount of their expected refund from the original tax return for the year they’re checking.

Once the IRS acknowledges receipt of a return, refund status information is typically available within:

  • 24 hours after receipt of a taxpayer’s e-filed tax year 2023 return.
  • Three to four days after receipt of an e-filed tax year 2022 or 2021 return.
  • Four weeks after mailing a paper return.

Taxpayers should note that the IRS updates the tool once a day, usually overnight, so there’s no need to check more often. The IRS reminds taxpayers that the fastest way to get a refund is by filing electronically and using direct deposit.

Refund delivery
Many different factors may affect the timing of refund delivery:

  • The tax return has errors, requires additional review or is incomplete.
  • The return needs a correction to the Earned Income Tax Credit (EITC) or Additional Child Tax Credit.
  • The time between the IRS issuing the refund and the bank posting it to an account may vary since processing times fluctuate.

The IRS will contact taxpayers by mail if more information is needed to process a return. IRS phone and walk-in representatives can only research the status of a refund if:

  • 21 days or more have passed since a return was filed electronically.
  • Six weeks or more have passed since a return was mailed.
  • “Where’s My Refund?” tells the taxpayer to contact the IRS.

If a taxpayer refund isn’t what is expected, it may be due to changes made by the IRS. These changes could include corrections to the Child Tax Credit or EITC amounts or an offset from all or part of the refund amount to pay past-due tax or debts. More information about reduced refunds is available on

Filing season reminders
Taxpayers should make their first stop to get information on filing a tax return. There is information on Choosing a tax professional, IRS Free File, Answers to tax questions and Tips on filing a return.

Taxpayers who file electronically and choose direct deposit typically get their refund in less than 21 days. Taxpayers who don’t have a bank account can find out how to open a bank account at a FDIC-insured bank or the National Credit Union Locator Tool.

Refund information for amended tax returns is not available on “Where’s My Refund?” Use “Where’s My Amended Return?” to get the status of an amended return.

The deadline for most taxpayers to file a tax return, pay any tax due or request an extension to file is Monday, April 15.

Corporate Transparency Act Reporting Fact Sheet

Corporate Transparency Act Reporting Fact Sheet

Almost all entities (including single member LLCs) will have some filing requirement under the Corporate Transparency Act (CTA). If your entity was in existence prior to December 31, 2023 the deadline to file is January 1, 2025. If your entity was formed on or after January 1, 2024 but before January 1, 2025 you must file within 90 days. Entities created after January 1, 2025 must file within 30 days.

Businesses generally exempt from filing:

  • Large companies defined in the CTA as businesses with:
    • Over 20 full-time employees working in the United States AND
    • A least $5 million in gross receipts or sales reported on the previous year’s tax return
  • Certain tax-exempt entities
  • SEC reporting securities issuers
  • Registered investment or insurance companies
  • Banks and credit unions
  • Governmental authorities
  • Certain inactive entities in existence prior to January 1, 2020

Additional filing exemptions can be found on FinCen’s website.

New Reporting Requirements Under the Corporate Transparency Act


The Corporate Transparency Act (CTA), part of Congress’s National Defense Authorization Act (NDAA), was passed in 2021. Its purpose is to improve business ownership transparency, particularly for small businesses (1). The goal is to increase awareness regarding an entity’s structure, ownership, and monitoring for potential illicit activities, including money laundering. Harsh penalties can be assessed for non-compliance.

Beneficial Ownership

The CTA requires disclosure of beneficial ownership information for most entities and their respective owners. A beneficial owner is someone who has the power or substantial authority to exercise control over the entity. The CTA refers to individuals who, either directly or indirectly, exercise substantial control or own at least 25% of the capital or profit interests of the entity (1). Substantial control can denote individuals who possess roles such as a senior officer, or an important decision-maker, and can make choices that impact the business, finances, and structure. It is important to note that an individual who is an intermediatory or acts on behalf of another, such as the trustee of a trust, may possess indirect ownership.

Reporting companies are not restricted to being domestic entities. If a foreign company is registered for business in any US state or jurisdiction the foreign entity must file under the CTA. However, some entities, including certain nonprofit entities, SEC reporting issuers, registered investment or insurance companies, banks, governmental authorities, and large companies are exempt from filing (2). Large companies are defined in the CTA as businesses with over 20 full-time employees working in the United States and having in excess of $5 million in gross receipts or sales reported on the previous year’s tax return (1). A full list of exempt entities can be found in the regulations.

BOI Report

The document that must be filed, called the Beneficial Ownership Information (BOI) report, is filed with the Financial Crimes Enforcement Network (FinCEN). FinCEN is a bureau of the U.S Department of the Treasury responsible for safeguarding the financial system (3). This document is not filed with the Internal Revenue Service and the information will not be publicly available. Entities in existence prior to December 31, 2023 have until January 1, 2025, to file their reports. Entities created after December 31, 2023 but before January 1, 2025 will have 90 days to file after receiving notice of creation (1). Any entities created on or after January 1, 2025 must file within 30 days. When there is a change of beneficial ownership, reports must be updated within 30 days. This can happen as a result of a sale, acquisition, merger, or family estate planning. If a company becomes aware of an error in its BOI report, it has 30 days to file a corrected report to avoid civil and/or criminal penalties.

Report Information

The report includes both the information about the business and its beneficial owners. Business details include the name and all trade names and DBAs, address, place of formation, location of principal place of business, and taxpayer identification number (TIN). Each beneficial owner must disclose their full legal name, date of birth, residential address, and provide a unique identifying document, such as a driver’s license or passport (2). This information is also required for newly formed businesses and for individuals who become beneficial owners. Reporting entities and beneficial owners have the option of requesting a FinCEN identifier, which is a unique identifier used to simplify the reporting process.

Company Applicants

Companies registered on or after January 1, 2024, will be required to report company applicants. There are two classes of company applicants. The first is the individual who directly files the document that creates or registers the entity and the second is the individual who is responsible for directing or controlling the filing (1). It is important to note that companies created before January 1, 2024 do not need to submit this information.


There are potentially harsh penalties for filing false or incomplete information, as well as failing to file an updated report. These include both civil and criminal penalties depending on the nature of the offense. Fines are up to $591 per day until corrected up to $10,000 per violation and potential jail time of up to two years (2). Penalties are cumulative until the entity complies and are adjusted annually for inflation.


The Corporate Transparency Act (CTA) is a new addition to the landscape of legislation aimed at reducing criminal financial activities while increasing awareness about the ownership behind businesses. This new provision, effective January 1, 2024, requires beneficial owners to file the Beneficial Ownership Information (BOI) report with FinCEN in a timely manner to ensure compliance. Please contact us with questions or assistance in coming into compliance during 2024.


  1. What to know about the Corporate Transparency Act |
  2. Beneficial Ownership Information Reporting |
  3. What We Do |

If you have questions or concerns please call us at  856-727-0100