Opinions expressed by Entrepreneur contributors are their very own.

Digital entrepreneurs, freelancers, and small enterprise house owners around the globe are seemingly joyful to be taught that the IRS is pausing enforcement of a rule change that may have required cost processing platforms to situation Type 1099s for transactions totaling over $600. Funds for items and companies, together with suggestions, are taxable enterprise transactions by regulation.

Beforehand, the IRS solely issued Type 1099-Ks if a enterprise had 200 transactions totaling $20,000 in a yr.

CNN quoted IRS Commissioner Doug O’Donnell concerning the delay as saying that “the IRS and Treasury Division have heard various issues in regards to the timing of implementing these adjustments below America’s bailout plan.” O’Donnell mentioned the IRS desires to assist ease the transition, and “further time will assist cut back confusion through the upcoming 2023 tax submitting season and provides taxpayers extra time to arrange and perceive the brand new reporting necessities.”

Ideally, small enterprise house owners and unbiased contractors now have extra time to know the brand new reporting necessities and guarantee they’re operational.

CNN notes that when the rule goes into impact, it can introduce no further taxation and won’t have an effect on in-person Venmo transactions corresponding to splitting the test at a restaurant. Nevertheless, the 1099-Okay report is anticipated to successfully cut back tax evasion.