For reference, here's the draft form (subject to change at any minute but at the moment this is the 2024 1040 Sch 1 draft):  https://www.irs.gov/pub/irs-dft/f1040s1--dft.pdf

This was discussed briefly at one of the IRS Nationwide Tax Forum sessions.  This is the "new and improved" system for 2024 vs. the 2023 instructions which told you to report it as income and then back it out as an adjustment to income.  I never liked those instructions.

We've had the $600 threshold for 1099-Ks in VA for a few years now.  My approach has been to include a preparer note (efiled with the return) for anything weird.  So far so good.  Obviously if it's all just on Sch C, it doesn't really matter.  In my experience the IRS computers default to assuming anything on a 1099-K belongs on Sch C.  So if you took your extended family to the beach for a week and your siblings, nephews, aunts, etc. all decided to pay you with Venmo for their share of the beach rental, now you can plop that in the box at the top of Sch 1 and (presumably) the IRS will ignore you.

If the intent of the 1099-K rules is to catch tax cheats, I'm not quite sure what's stopping the tax cheats from just putting the entire 1099-K amount(s) in the new and improved "leave me alone" box and having the IRS computers ignore them.  But that's somebody else's problem.  My problem is getting the IRS to not harass my clients who sell $5,000 worth of their kid's hockey equipment on ebay for $650 and now have a 1099-K to show for it.

Rick