If it was me I'd probably ignore the 1099 unless it was for a bunch of money. Be interesting to see if the IRS actually dings anyone for selling a $600 used car part.
Funny you mention this... cuz reading this thread reminded me that my PP 1099 for a few parts sales may not have been factored into the 2021 filing.
I'm not sure anyone knows how the IRS is going to handle this. They'll get flooded with these low dollar amount 1099's that don't match the 1040 info and then I don't know what they'll do. They don't have the bandwidth to make a federal case out of every missing 1099 form. They might send automated letters requesting information or something like that.
I'm not sure what I'll do when I report income since only a small number of my customers pay with PayPal. So I'll get a 1099 form that doesn't match what I report as income and there will not be an easy way to reconcile. It is basically just random information that will confuse the issue of income reporting. My guess is after a couple of cycles of this the politicians will hear enough that they'll make some changes. Maybe raise the limit back up to $10,000 or something like that.
