Thanks to a provision in the American Rescue Plan Act, which Congress passed back in 2021 without any Republican votes, small businesses and individuals will receive millions of new tax forms in the coming months from Payment Settlement Entities (PSEs). Beginning in 2023 (for 2022 tax purposes), PayPal, Venmo and online marketplaces that connect buyers and sellers must issue a Form 1099-K for transaction made by customers with $600 or more in annual gross sales. Previously, PSEs were not required to issue a Form 1099-K unless the user had more than 200 transaction and $20,000 total transactions in a calendar year. In a notice issued last week, the Internal Revenue Service (IRS) advised businesses and individuals of the change and cautioned that the agency would be closely monitoring the $600 threshold as it applies to business transaction during the 2022 tax year. Be conscious of the change and be certain to discuss it with your professional tax preparer.