The IRS has released a revision of Form 1099-K, Payment Card and Third Party Network Transactions, along with updated instructions for use in reporting payments made during calendar year 2026. The most significant development is the permanent return of the third-party settlement organization (TPSO) reporting threshold to its original standard: reporting is required only where a payee’s gross payments exceed $20,000 and total transactions exceed 200 for the year. This reversal eliminates the anticipated $600 threshold and materially reduces reporting obligations for many platforms, businesses, and gig economy participants.
In addition to the threshold change, the revised form introduces new data elements and structural updates. Boxes 1c (cash tips) and 1d (Treasury Tipped Occupation Codes) have been added, expanding reporting requirements for tipped income across traditional and platform-based industries. The form also adopts a redesigned layout, including segmented address fields and repositioned TIN fields, and reflects updates to state reporting boxes—though certain instruction inconsistencies remain under review. Together, these changes reflect both a scaling back of who must file and a targeted expansion of the data collected from those that do.
To view the current Form 1099-K, click here.
To view the current Instructions for Form 1099-K, click here.
