IRS Delays 1099-K $600 Threshold for a Year

IRS Delays 1099-K $600 Threshold for a Year

If you were worried about your business being inundated with 1099-K Forms this upcoming tax filing season, take note!

On December 23, the IRS announced third-party settlement organizations (TPSOs) “will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower $600 threshold amount enacted as part of the American Rescue Plan of 2021.”

Instead, the existing 1099-K reporting threshold of $20,000 in payments from over 200 transactions will remain in effect for 2022. This will give taxpayers and tax professionals additional time to understand the new reporting requirements and help ensure a smooth transition. The new threshold of $600 – regardless of the number of transactions – will apply to business transactions that occur January 1, 2023 or later.

So, if you accepted a business-related payment from a TPSO like eBay, PayPal, Venmo or Etsy in 2022, you will not receive a 1099-K from that TPSO for this upcoming tax season, unless aggregate payments were $20,000 or more from over 200 transactions. For 2023, you will receive a 1099-K from a TPSO totaling $600 or more; then, you will need to include it as part of your tax filings.

More information, with additional details – like what you should do if you already received a 1099-K based on the lower $600 threshold – should be forthcoming from the IRS soon. We will share that information as it becomes available. In the meantime, if you have any questions, please refer to the Q&As that follow or give RBT CPAs a call.


What Is a 1099-K Form?  The form, technically known as Form 1099-K Payment Card and Third-Party Network Transactions, is used to report payments your business receives from third-party settlement organizations (TPSOs) – like eBay, PayPal, Venmo, or Etsy – if those payments exceed certain thresholds. Any 1099-K you receive becomes part of your annual tax filings and considered taxable income.

What Changed? As part of the American Rescue Plan Act, the threshold for issuing 1099-Ks changed. Before 2022, a 1099-K was issued if over 200 transactions totaled more than $20,000. Starting in 2022, that threshold was reduced to $600, regardless of the total number of transactions. However, the IRS’ recent decision to delay the adoption of the $600 threshold until 2023 will give payees, accounting firms, and the IRS another year to prepare.

Who Is Impacted? In 2023, companies like PayPal, Venmo, Square, and Stripe will be sending you a 1099-K if you receive more than $600 in annual payments for goods or services rendered. As a result, if you sell small amounts of merchandise on selling platforms like eBay or Etsy, for example, you may find yourself responsible for increased taxes. Small or midsized business owners who receive most of their customer payments from credit cards, cash, or checks will most likely be unaffected.

What About Personal Transactions? The reporting requirements are limited to goods and services, so it won’t affect funds you receive for splitting that vacation rental or dinner with family or friends. Just be sure to keep accurate records when you are paying for personal items, so it isn’t incorrectly reported to the IRS.

What’s RBT’s Advice to You?

Start planning now: If you receive payments for goods or services through third-party networks, you may end up receiving a tax form for the first time for 2023. This is going to be an administrative burden and likely complicate your tax situation. It is best to be prepared and plan for any potential tax consequences by adopting strategies to minimize your tax bill early in the year.

Keep detailed records of income/expenses related to sales activity: If you sell goods or services and get paid through a third-party network, you may be eligible to deduct expenses related to that activity. Learn more by speaking with an RBT CPA professional.


It’s always good practice to consult your tax advisor to determine how best to use the information on your Form 1099-K when filing your income tax return. As always, our team of professionals at RBT CPA’s is happy to help you navigate this and other IRS updates. Give us a call.

RBT CPAs and Sickler, Torchia, Allen & Churchill, CPAs Merge Effective July 1, 2022

RBT CPAs and Sickler, Torchia, Allen & Churchill, CPAs Merge Effective July 1, 2022


RBT CPAs, Inc. and Sickler, Torchia, Allen & Churchill CPAs – both leading accounting, auditing, consulting, and tax firms in the Hudson Valley – have merged their practices effective July 1, 2022, resulting in greater accessibility, depth of knowledge and expertise, state-of-the-art technology, and enhanced services for clients.

The two firms are very similar in size and culture, with each bringing something extra to the table. RBT CPAs’ expertise spans a broader spectrum of industries, while Sickler, Torchia, Allen & Churchill CPAs has a larger presence and reach in Lake Katrine (Ulster) and Hudson (Columbia), as well as the Capital Region, Metropolitan New York areas, and the Berkshires.

“We are really excited about bringing our two firms together to leverage our combined talents and reach to offer even more value to our customers,” said Mike Turturro, Managing Partner & CEO, RBT CPAs. “Customers will continue to receive the personalized services they are accustomed to, while benefiting from the enhanced capabilities our combined organizations can deliver.”

Sickler, Torchia, Allen & Churchill CPAs Managing Partner Craig Sickler said, “Culturally, our two organizations are a very strong fit. We both started and grew up in the Hudson Valley and have been able to retain the personalized service levels often associated with small firms, while offering the know-how and experience of larger firms.”

Michael Torchia, Partner, Sickler, Torchia, Allen & Churchill CPAs, added, “We are really excited about what this merger will mean to our clients, employees, and the communities where we live and operate. Our two organizations truly complement each other and will enable our new combined business to deliver even more value while maintaining the highest levels of personalized service.”

The combined organization will maintain their current locations, staff, fee structures, and client service teams. Mike Turturro said, “Over time, we look forward to bringing our organization’s enhanced capabilities to clients throughout the Hudson Valley and beyond to show why and how our two organizations are better together.”

About RBT CPAs and Sickler, Torchia, Allen & Churchill CPAs: RBT CPAs and Sickler, Torchia, Allen & Churchill CPAs is the Hudson Valley’s largest CPA firm. The company services clients in construction, education, employee benefits, government, health care, manufacturing, and more. The dedicated professional team is committed to providing outstanding, professional, personalized services with the highest levels of integrity. Learn more about its diverse offerings and award-winning service at


For Media Inquiries Contact:

Erin Blabac
(845) 567-9000 Ext. 269

RBT CPAs Named One of the Best Places to Work in New York

RBT CPAs Named One of the Best Places to Work in New York

For the 6th consecutive year, RBT CPAs has been named one of the Best Places to Work by the New York State Society for Human Resources Management (NYS-SHRM) and Best Companies Group.

Businesses compete for a spot on the list based on a review of its business policies, practices, work environment, demographics, and the results of an employee engagement survey. RBT CPAs – a leading accounting, auditing, consulting, and tax firm in the Hudson Valley – ranked 11th in the medium employer category, moving up one spot from last year. The company adds the award to a growing list of recognition, including the 2021 Forbes Best Tax Firms in America List; Reader’s Choice Best of the Best 2021 List; and others for best regional accounting firm and employer.

“We are thrilled to once again make the Best Places to Work in New York list,” says Managing Partner Mike Turturro. “We really do work hard to create a professional culture that fosters learning and growth. Every single RBT CPA employee makes an impact at work every single day, while being part of an organization that takes tremendous pride in being a valuable contributing member of the Hudson Valley community. We foster an open-door environment, where titles don’t matter. Instead, we focus our energies on working together to deliver excellence and exceed client expectations with every engagement.”

Winning a coveted spot on the list couldn’t occur at a better time, as RBT CPAs continues its annual recruitment process looking for future team members who will have the growth opportunity to become future partners. “We are growing across all fields and looking to expand our team with new talent looking to use their skills to contribute to RBT CPA’s and our clients’ success.” To learn about its workplace, culture, rewards, and job opportunities, visit RBT CPAs’ careers pages.

About RBT CPAs RBT CPAs LLP is one of the Hudson Valley’s largest CPA firm. The company services clients in construction, education, employee benefits, government, health care, manufacturing, and more. The dedicated professional RBT team is committed to providing outstanding service and prompt communication with clients. Learn more about its diverse offerings and award-winning service at

NYS PTET UPDATE: What We Know & What It Means to Your Business

NYS PTET UPDATE: What We Know & What It Means to Your Business

Important Deadline Approaching

The 2022 PTET election period is open. To opt in, submit the Annual Election Application before or on March 15. Click here for instructions.

While RBT CPAs is always ready to do whatever it takes to support clients, by law we can’t make your PTET election. However, we can file your return and pay any tax owed if you complete and submit a TR-2000.

For more information or assistance, contact your local RBT CPAs, LLP office.

The New York State Department of Taxation and Finance issued a Pass-Through Entity Tax (PTET) technical bulletin last August and provided updates via its website. While questions remain, deadlines loom for paying any balance owed for 2021 PTET (if applicable), for opting in for 2022, and for providing a first quarter 2022 payment. Now is a good time to review what we know so you can plan accordingly.

What is a pass-through entity (PTE)?

When a company’s income taxes are paid solely by its owners (rather than the business), it’s considered to be a PTE. The business doesn’t pay corporate taxes; instead, its owners pay taxes on their share of business income based on their personal tax rates. As a result, business owners avoid having to pay taxes twice – once at the corporate level and a second time on the income they receive as owners.

Are all businesses considered pass-through entities (PTEs)?

No. PTEs are distinguished by which tax form they file. To be considered a PTE, an entity must file a 1065 partnership or a 1120-S S corporation return. A sole proprietorship or LLC owned by a single member and reported via Form 1040, Schedule C, or Schedule E does not qualify as a PTE.

What is a pass-through entity tax (PTET)?

In 2017, the Tax Cuts and Jobs Act (TCJA) limited the deduction business owners could take for state and local taxes on income and property to $10,000. This impacted high tax states the hardest. States realized the same limit didn’t apply to businesses at a corporate level, and the pass-through equity tax (PTET) was born. In 2018, Connecticut became the first and only state to adopt a mandatory PTET; other states followed with a voluntary PTET.

When did New York (NY) adopt a PTET?

The IRS issued additional guidance for the PTET via Notice 2020-75 in November 2020, clarifying that state taxes paid by a partnership or S Corporation would reduce ordinary business income and not be subject to the $10,000 State and Local Tax (SALT) cap. More states seemed to take this to be a green light from the IRS to move ahead. Today, nearly half of all states have their own PTET, including New York, which adopted its PTET in 2021. NY state businesses could opt in by October 15, 2021, for tax returns filed in 2022, and annually thereafter.

What is the NY State PTET election?

The PTET is not automatic; businesses must opt in to take the PTET each year. Once a business does opt in, the election is irrevocable for that year. For 2021, the opt in election period was in October. Starting this year and each year going forward, the opt in election must be made by no later than March 15. If a business does not want the PTET, no action is required.

What is the benefit of opting in to take the NY state PTET?

Businesses that opt in will receive a based on the PTET paid, while their owners may be eligible for a PTET credit on their NY state income tax returns.

Is there any potential downside to opting in?

Businesses taking the PTET in 2021 and 2022 will want to pay special attention to cash flow, as any balance owed for 2021 plus the first quarter estimated payment for 2022 will both be due March . (Business owners were required to pay personal estimated taxes for 2021 and those that did and who are now paying PTET may overpay and owe less than normal to NY.) We are constantly monitoring potential federal tax law changes – including raising the $10,000 SALT cap – that might impact the value this program provides. For 2022 onwards, businesses must make an election on or before March 15, so business owners will have to speculate about profits for the upcoming year, with only a few months of actual data in hand.

Who can make the PTET election?

Only an authorized person from an eligible entity – not a tax preparer – can make the election to opt in. For a partnership, an authorized person includes “any member, partner, owner or other individual with authority to bind the entity or sign returns under Tax Law 653.” For a New York S Corporation, an authorized person includes “any officer, manager or shareholder of the New York S corporation who is authorized under the law of the state where the corporation is incorporated or under the S corporation’s organizational documents to make the election.”

How do I make a PTET election for 2022?

You must login to your New York State tax account to make the election. For step-by-step instructions, we created this guide.

How does my business pay its PTET?

For 2021, businesses will need to go onto their online NYS tax filing account and initiate payment directly to the state. A tax preparer or software cannot do this unless a business owner completes a TR-2000, which provides authorization to log into the account, file a return, and pay any tax owed. RBT CPAs encourages its clients to complete and submit this form and then we’ll handle the rest when it comes to your PTET filing.

If you have any questions or need additional information or assistance, please remember RBT CPAs is here to help. Let us know what you need so you can be 100% confident you’re making the right decisions and taking the right actions for your firm in relation to the NYS PTET.

RBT CPA’s Ross Trapani, CPA, Admitted to the Partnership

Ross Trapani

Ross Trapani

RBT CPAs LLP, takes great pleasure in announcing that Ross Trapani, CPA, of Lagrangeville, New York, has been admitted to the partnership. Ross will officially become a partner on January 1, 2022. He has been with the Firm since October of 2017. Ross is currently working out of the Dutchess office in the Client Service Department. Ross is the Treasurer for two nonprofits, Rebuilding Together Dutchess County and ARC of Dutchess Foundation. He is also on the Professional Development Programming Committee for the Dutchess Chamber Foundation and co-coaches his daughter’s CYO basketball. Ross grew up in Ulster County and now resides in Lagrangeville in Dutchess County with his wife and two young daughters.

Managing Partner, Michael Turturro adds, “Ross has set a wonderful example of hard work and community involvement within this firm.  He has been a great teacher to other employees and a pleasure to work with. We are so very pleased to welcome Ross to our Partner group. Congratulations! Well deserved!”

RBT CPA’s Keith Dommreis, CPA, Admitted to the Partnership

Keith Dommreis

Keith Dommreis

RBT CPAs LLP, takes great pleasure in announcing that Keith Dommreis CPA, of Poughkeepsie, New York, has been admitted to the partnership. Keith will officially become a partner on January 1, 2022. He has been with the Firm since January of 2020. Keith is currently working out of the Newburgh office in the Tax Department. He has spent the majority of his life here in the Hudson Valley and raised his daughter and son here. He currently resides in Poughkeepsie but travels often to visit his grandchildren.

Managing Partner, Michael Turturro adds, “We are so very pleased to welcome Keith to our Partner group. Keith came to us a few years ago with an abundance of knowledge and experience. Since, he has been a driving force in the firm and our tax department. His contributions are invaluable. Many Congratulations!”

RBT CPA’s Donna Crowley, CPA, Admitted to the Partnership

Donna Crowley

RBT CPAs LLP, takes great pleasure in announcing that Donna  Crowley CPA, of Wallkill, New York, has been admitted to the partnership. Donna will officially become a partner on January 1, 2022. She has been with the Firm since September of 2005. Donna is currently working out of the Newburgh office in the Audit Department. She is an active member of the Wallkill School District Board of Education and the audit committee which enhances her vast financial expertise. Donna resides in the Hamlet of Wallkill and her three active children keep her schedule very busy.

Managing Partner, Michael Turturro adds, “We are so elated to welcome Donna to our Partner group. Donna has been an integral part of our Audit department and an essential player in the continued growth of the firm. I am excited to watch her develop in her new role as a partner. Many congratulations! Your team is so proud of you!.”

RBT CPA’s Manager Rebecca Reynolds, CPA, MBA Joins the CFHV


Rebecca Reynolds

RBT CPA’s Manager Rebecca Reynolds joins The Community Foundation of the Hudson Valley (CFHV) as their newest Trustee Member  and Chair of the Audit Committee. This prestigious role will allow Rebecca to join an equally committed team that is dedicated to ensuring the long-term sustainability of the organization while targeting meaningful investments to meet the needs of the community.

The Community Foundations of the Hudson Valley  works to strengthen the Hudson Valley by helping individuals, businesses, and organizations establish and administer funds that support vital causes and charities. Partnering with generous donors, they address current and emerging community needs through effective grantmaking to improve the quality of life for all. Additionally, they provide technical assistance to help nonprofits operate more effectively. Since the start of the Covid-19 pandemic, hundreds of donors have contributed to CFHV, supporting urgent local needs to help mitigate ongoing pandemic impacts.

“What an honor for Rebecca to be elected to the Board of Trustees and Chair of the Audit Committee, it’s so well earned,” said RBT CPA’s Managing Partner, Mike Turturro. “Rebecca exemplifies integrity, brilliance, and balance, she will be a remarkable addition to the board.”

“We are honored and grateful that Rebecca is joining the Community Foundations as a Trustee and Chair of the Audit Committee,” said Sally J. Cross, President and CEO of Community Foundations of the Hudson Valley. “The Community Foundations of the Hudson Valley has thrived in this region for more than 50 years with the support of accomplished and civic-minded volunteers like her.”

The dedicated professional RBT staff would like to extend a heartfelt congratulations to Rebecca as she begins this exciting and well-deserved new role. To learn more about the diverse offerings and award-winning service you can expect from RBT, please visit the RBT site. To learn more about ways you can get involved with The Community Foundation of the Hudson Valley, please visit the CFHV site.

RBT CPAs Awarded on the Forbes America’s Best Tax Firms 2021 List

Flying Geese 2021

RBT CPAs has been awarded a spot on the Forbes list of America’s Best Tax Firms 2021. This prestigious award is presented by Forbes and Statista Inc., the world-leading statistics portal and industry ranking provider.

Forbes and Statista created the award list through an independent survey of tax and accounting professionals who provided thousands of recommendations. Respondents were recruited through an online survey as well as through a carefully profiled online-access panel. Recommendations from professionals working at tax and accounting firms as well as professionals working with tax and accounting firms were considered in equal measure.

“Based on the results of the study, RBT CPAs is ecstatic to be recognized on the Forbes list of America’s Best Tax and Firms 2021,” said Managing Partner, Mike Turturro.

As community-minded, trusted business advisors and advocates, RBT’s high-value accounting, auditing, consulting, and tax services have previously earned the firm recognition as the ‘Best in the Hudson Valley’ and one of the firms to watch. RBT team members attribute the recent Forbes distinction to its strategic, innovative, and caring environment that is dedicated to making the client’s experiences remarkable.

The dedicated professional RBT staff is committed to providing outstanding service and prompt communication with clients as New York faces unprecedented economic challenges in the New Year. To learn more about the diverse offerings and award-winning service you can expect from RBT, please browse our site or contact us.

Hours, Hours, and Less Hours

Hours, Hours, and Less Hours

Excitement is building as we are getting ready to celebrate the last holidays of the year. The majority of us will be lucky enough to have two short work weeks without dipping into our personal PTO bank. When we return to our offices in January, we will return to our normal 40 hour workweek. Unless you’re an accountant, that is.

If you’re an accountant, January is the start of a whole different season reserved especially for you. The close of the holiday season means saying goodbye to holiday cheer, gift exchanges, and homemade cookies. Yes, January ushers in tax season – marked by colder temperatures (if you’re here in the Northeast), longer days, and lots of work. At the majority of accounting firms, it is not uncommon for an accountant’s work schedule to go from 45-50 hours per week up to 65-70 hours (or more) per week from January through April 15th. If you’re an accountant at a Big Four Firm – you know this to be true. The expectation that you are required to work longer hours is generally accepted as a part of the industry culture. In addition, accountants need to complete billable hours – time that can be billed to a client. Because it’s impossible to bill every minute of an accountant’s day to billable time, an accountant might need to work an hour and a half in order to be able to charge one hour of billable time. What does this all add up to? Three and a half months of long days and nights spent at most firms. Most – but not all.

Here’s where RBT CPA’s is different. As the largest CPA firm in New York’s Hudson Valley, we reject the status quo and still produce stellar work for our clients. We start our busy season in the middle of January, and from the middle of January to the middle of February we cap our total hours worked at just 50. Then from mid-February to April 15th the maximum number of hours a person is allowed to work gets capped at just 55 per week. At some other firms, 55 hours is the norm when it comes to a workweek. At RBT, a 55 hour work week is the exception for a short period of time.

Consider how valuable this work balance is when you factor in your annual salary working an average of 65 – 70 hour workweek versus a 40 – 55 hour workweek. When you do the math and break your salary down to an hourly wage, there is a sizeable earning difference between the two. At RBT, we believe a healthy, happy employee is one who has a life outside of work. We feel being able to spend invaluable time with your friends even during the busy season is key to maintaining your physical and emotional health.

Sounds too good to be true, but… it is! Contact to talk about opportunities to join the team.