1099-K can't go on Other line. Even if next line negates it. IRS sent a letter to my clients that self-empl tax is due.

[Just-Lisa-Now-]

What did they get the 1099K for?  That determines where it goes on a tax return.

[Greta]

EBay sent 1099-Ks to a handful of clients. They couldn't remember why. I assumed they sold a few personal items. I put it on Sch C and brought the net to zero. Told them to argue with the local Commissioner of Revenue or pay the $30 license. She diligently sends a letter to all residents with a Sch C. To election officers; to professors who got $600 honorarium for a talk; to SAT test monitors. I used to put on Other line, but then a letter would come from IRS.

[TaxGuyBill]

I'm not going to play games with  the 1099-K.

I'm going to prepare an accurate return, and put the numbers where they belong (8949/Schedule D would be used for personal items that are sold).  If it doesn't belong on the tax return, it isn't going on the tax return.

If I don't put it on the tax return, I'm going to give the client a pre-written letter so if they receive an IRS notice they can send it to the IRS saying it is not taxable income.  I will also instruct the client that if they receive a letter, they should contact their Congressional representatives to complain that the IRS is wasting everybody's time by sending out such letters.

[DEVOR711 · Accepted solution]

https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-t...

I hope this is real 😄

[TaxGuyBill]

I think that is even more crazy.

The problem wasn't with the issuing 1099-Ks.  The companies that issue them should have no problem with the changed thresholds and presumably have already changed their programming to the new thresholds.

The potential problem was with what the IRS does with 1099-Ks.  A better 'fix' would have been for them to announce what they did when they first came out - that as of now they will not be automatically 'matching' them but will just use them for an idea for what is going on and to watch for patterns.

[qbteachmt]

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Here is "Action(s) to Take" per the IRS:

https://www.irs.gov/businesses/understanding-your-form-1099-k