Beginning January 1, 2022, marketplaces like Noihsaf Bazaar are required to report all earnings to the Internal Revenue Service. Because of this (and other regulations), Stripe is required to collect Social Security numbers from sellers in the U.S. This information will be kept private and secure and is not stored on Noihsaf Bazaar servers.
A provision in the American Rescue Plan Act of 2021, better known as the COVID Relief Bill, requires companies to report/issue a 1099-K to anyone with over $600 in sales per year, even if only in a single transaction.
*** 11/21/2023 The IRS has issued a delay on the 1099 reporting changes. This means that for the 2023 tax year only sellers who meet any of the following criteria will receive a Form 1099-K:
- Those who exceed the reporting threshold of $20,000 and 200 transactions
- Those who had backup withholding applied in 2023
- Those who are residents of states that have a lower reporting threshold
For the 2024 tax year, as part of a phase-in to implement the $600 reporting threshold the IRS is planning for a threshold of $5,000.
We understand this new tax is law in confusing and a burden to taxpayers. We are pleased to report that we have joined the 1099-K Fairness coalition and are actively working to support legislative proposals to ensure that individuals, entrepreneurs, and small and micro-businesses are not needlessly impacted by the new 1099-K tax laws.
We encourage sellers to speak with a tax professional when reviewing their 1099-K’s to determine what amounts are classified as taxable income.