What are the new 1099-K thresholds for 2025?

The threshold for Form 1099-K has been raised to $20,000 and 200 transactions for the 2025 tax year.

Why are businesses confused about IRS tax forms?

Businesses report unclear communication from federal and state agencies as the main reason for confusion regarding tax forms.

What is the new 1099-DA form for?

The 1099-DA form is for brokers to report sales or exchanges of digital assets for customers that result in a disposal event.

Home / Business and Economy / IRS Clarity Lacking on Key Tax Thresholds

IRS Clarity Lacking on Key Tax Thresholds

18 Dec

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Summary

Many AP executives lack confidence in understanding 1099-K, 1099-MISC, 1099-NEC thresholds.
Just over half of businesses are preparing for the new 1099-DA digital asset form.
Unclear IRS communication is a major source of tax reporting uncertainty for businesses.

IRS Clarity Lacking on Key Tax Thresholds

Businesses are encountering significant confusion surrounding upcoming tax reporting changes, particularly concerning Form 1099 series. A substantial number of accounts payable executives express a lack of confidence in their grasp of the reporting thresholds for 1099-K, 1099-MISC, and 1099-NEC. This uncertainty is exacerbated by what respondents describe as unclear IRS communication, with many seeking more explicit guidance from federal and state agencies.

Further complicating matters, preparation for the new 1099-DA form, which applies to digital asset transactions, lags significantly. Only 55% of businesses reported being ready for this new requirement. The complexity of 1099 forms, which represent a family of over a dozen distinct IRS forms, contrasts with the more standardized W-2 reporting.