Source: IRS Fact Sheet 2025-08; One Big Beautiful Bill (OBBB)

Form 1099-K is issued by banks, credit card clearing houses and others such as PayPal and Zelle to recipients of funds clearing through their organization which are deemed to be business-related.

Under OBBB, the threshold for issuance by a third party settlement organization is now transactions to a payee exceeding $20,000 or 200 transactions in a year.