New 1099 thresholds, crypto tax forms test AP departments: survey

Group 1 - The One Big Beautiful Bill Act (OBBA) introduces significant changes for companies in the upcoming tax season, particularly affecting the reporting thresholds for Form 1099-K, which has been raised to $20,000 and 200 transactions instead of the previously planned $2,500 for 2025 [3] - Managing 1099 forms is more complex than W-2s due to the variety of IRS forms and differing requirements, as highlighted by Avalara's general manager Kevin Halverson [4] - The new 1099-DA form will be required for digital asset brokers starting in the 2025 tax year, but many companies are not yet preparing for this due to the novelty of the rules [5] Group 2 - A survey by Avalara reveals that 43% of accounts payable executives lack confidence in their understanding of the new reporting thresholds for 1099-K, 1099-MISC, and 1099-NEC [7] - Only 55% of respondents are preparing for the new 1099-DA form, indicating a significant gap in readiness among businesses [7] - The survey also indicates that 31% of respondents desire clearer instructions from federal and state agencies regarding the changes, which contributes to planning difficulties and increases the risk of late or inaccurate filings [7]