01. International Tax

We provide tailored solutions to complex global businesses doing business in the U.S. Small or multinational, we guide clients through the maze of complex U.S. international tax rules.

02. Offshore Tax Compliance

We assist clients with specialized counsel to fix noncompliance with international tax reporting and penalties. FBAR, forms 8938, 8621, 3520, 926, 5471 and 5472 are among the most common forms that we solve through compliance programs such as streamlined procedures, Voluntary Disclosure Program or the Delinquent International Information Return Submission Procedures (DIIR).

03. Small Business Tax Planning

We assist small and medium businesses with efficient tax structuring to improve efficiencies. Proper tax election, s-corp elections and partnership planning are some of the main solutions offered.

04. Controversy Tax

We guide and represent clients before the IRS including examinations and appeals, as well as represent clients in Tax Court or Federal Courts.

05. Tax Debt Resolution

We help clients to face harsh collection activities, including liens, levies and obtaining a collection alternative such as an offer in compromise, installment payment plans, among others.

06. IRS Criminal Investigations

Our Firm provides representation before IRS Criminal Investigation Division, including Malta Pension Plans and summons.

07. High Net Worth & Family Offices

Assistance with estate planning for select clients and those with cross-border operations, planning for inheritance taxes, and gift taxes in the USA.

08. Start-Ups & Business Tax

No matter how small the idea, we assist clients with the best tax planning and alternatives for their business.

09. Crypto Tax

Our Firm provides tax planning and tax advice on crypto assets and crypto events, including mining, forks, rewards, and disposition/exchange of crypto.

10. BOI Report- Corporate Transparency Act

We assist business owners, CPA and tax preparation firms to file the Beneficial Ownership Information (BOI) report with the FinCEN.

How to Report 1099-K for 2024?

Small Business Tax Planning

08.20.2025

Form 1099-K has become an important reporting tool for taxpayers receiving payments for goods or services. For the 2024 tax year, the 1099-K reporting threshold is reduced to $5,000. This article outlines the thresholds for 1099-K issuance, provides examples of common issues such as misclassified income, and highlights some reporting practices, including Schedule C filing for business-related income.

 

What is Form 1099-K?

Form 1099-K, “Payment Card and Third Party Network Transactions,” reports payments received through:

    • Credit, debit, or stored-value cards.
    • Payment apps or online marketplaces (classified as third-party settlement organizations, or TPSOs).

Threshold for Issuance in 2024

For tax year 2024, the reporting threshold for issuing a 1099-K is $5,000 for payments received through third-party settlement organizations (TPSOs), including payment platforms and online marketplaces. This is part of a phased approach to implement the stricter reporting requirements introduced by the American Rescue Plan (ARPA).

 

Common Platforms Issuing 1099-K

    • Payment Apps: Venmo, PayPal, Cash App.
    • Online Marketplaces: eBay, Etsy, Amazon Marketplace.
    • Gig Economy Platforms: Uber, Lyft, DoorDash.

 

Taxpayers should track income from these platforms to ensure proper reporting, as gross amounts on the form may not account for fees, refunds, or deductions.

 

Addressing Misclassified Income

A frequent issue involves non-business transactions, like personal gifts or donations through Venmo, being reported as income. For example: A taxpayer receives $5,000 in personal donations via Venmo. Venmo, unaware of the transaction’s nature, issues a 1099-K. The taxpayer is faced now with the question of whether such gift is taxable due to the issuance of the 1099-K. In this case, it is advisable that the taxpayer reports the amount stated on the 1099-K and then make an adjustment (with the proper disclosure) to reduce the amount that was incorrectly reported as income on the 1099-K.

 

Reporting on Schedule C for Business Income

If 1099-K income relates to a trade or business:

    • Use Schedule C to report income and deduct eligible business expenses.
    • Adjust the gross payment amount from Form 1099-K for platform fees, refunds, and discounts to calculate taxable income.

 

Example:

    • A freelance graphic designer receives $25,000 via PayPal, reflected on Form 1099-K.
    • PayPal charged $1,000 in fees.
    • Taxpayer deducts fees and reports $24,000 as business income on Schedule C.

 

Relevance for Taxpayers and Tax Professionals 

Taxpayers must maintain comprehensive records, including invoices, receipts, and transaction logs, to reconcile 1099-K amounts accurately. Tax professionals should guide clients in understanding their reporting obligations and avoid surprises.Taxpayers receiving unexpected 1099-Ks should immediately consult a tax advisor to correct misclassified income or adjust reporting for errors.