The IRS says the One Big Beautiful Bill Act was signed into law on July 4, 2025, and one of its major reporting changes was to Form 1099-K. In an October 23, 2025, IRS release, the agency said the law retroactively reinstated the reporting threshold that existed before the American Rescue Plan Act changes, so third-party settlement organizations generally are not required to file Form 1099-K unless the payee’s reportable payment transactions exceed $20,000 and exceed 200 transactions.

 

That change affects when payment platforms have to send a 1099-K, but it does not change the underlying tax rule that taxable income is still taxable. The IRS says that whether or not you receive a Form 1099-K, you still must report taxable income from goods sold at a gain or services you provide. So the law changed the reporting threshold, not the basic rule that business income generally must still be reported.

In practical terms, this means fewer people should receive a 1099-K just because of payment-platform activity alone, but anyone earning taxable business or self-employment income still has to report it properly.