West STL News

Congresswoman Ann Wagner, Congressman Chris Pappas, and Congressman Tim Burchett have sent a letter to House and Ways and Means Committee leadership, urging the inclusion of a legislative fix for Form 1099-K reporting requirements in the upcoming tax package. The lawmakers emphasize the need for certainty and clarity for online sellers who are facing bureaucratic hurdles due to the changes in the reporting threshold.

The recent changes in the 1099-K reporting threshold have raised concerns among millions of Americans who could be taxed for transactions such as selling a bike or used clothes online. The threshold was lowered from $20,000 and 200 transactions to $600, without considering the millions of individuals selling used or pre-owned items for less than the original purchase price. This has led to confusion and the potential for overreporting of income, resulting in mistaken overpayment or ineligibility for certain tax benefits.

In their letter, the lawmakers state, "While the IRS has issued a further postponement of the new $600 reporting threshold for payments made in 2023, a long-term legislative fix would provide much-needed certainty for online sellers." They highlight the need for a permanent solution to address the issue and urge Congress to act.

The lawmakers also express their support for the increases to other reporting thresholds, such as the 1099-NEC and the 1099-MISC, included in the draft. They hope that an appropriate threshold for the 1099-K can be addressed as well. Despite having different perspectives on the ideal reporting threshold level, they agree that action needs to be taken to permanently resolve the issue.

The inclusion of a provision raising the 1099-K reporting threshold in the final bill passed by the Committee is urged by the lawmakers. They emphasize the importance of providing millions of Americans with certainty and clarity, instead of relying on a patchwork of IRS delays.

The letter concludes with the lawmakers expressing their gratitude for the Committee's commitment to developing a bipartisan tax package and their anticipation of a prompt response.

The push to include a 1099-K fix in the tax package is a bipartisan effort led by Congresswoman Ann Wagner, Congressman Chris Pappas, and Congressman Tim Burchett. They are urging Congress to address the reporting requirements that threaten to burden online sellers with unnecessary bureaucratic hurdles. The lawmakers highlight the need for certainty and clarity for millions of Americans who could be taxed for transactions that do not result in taxable income. They call for a permanent solution to the issue and express their support for increasing reporting thresholds in other areas. The lawmakers emphasize the importance of including a provision raising the 1099-K reporting threshold in the final bill passed by the Committee.