Vermont recently announced a change to state information reporting that directly affects reporting of Form 1099-K. With the passage of Act 73 of 2017, which modifies Vermont tax information reporting law under 32 V.S.A. § 5862d, the new law requires third party settlement organizations (TPSOs) to report payments that equal to or exceed $600 per person. This change dramatically lowers the filing threshold, which was previously $20,000 and 200 or more transactions per person.
This change is applied retroactively as of January 1, 2017, and will apply to tax year 2017. Filing with the Vermont Department of Taxes will be due 30 days after the federal filing due date. Please note that Act 73 also adds enforcement provisions, and a failure to provide the required information by the due date will be considered a failure to file a return.
To review the update from the Vermont Department of Taxes, please click here.