Side Hustlers Rejoice: IRS Again Delays $600 Reporting Rule for App Payments After Rollout Fumble

Click here to read the full article.

Workers in America’s sprawling gig economy and millions of others who buy and sell through the internet have received a reprieve from a tax law change Democrats rammed through in 2021.

Before 2022, the rule was that a worker had to receive more than 200 payments and receive more than $20,000 from those payments to trigger a Form 1099-K. The form is sent by a third-party processor such as PayPal or Venmo to the individual who was paid. The form also goes to the IRS.

According to the New York Post, not a single Republican voted for the tax law change that cut the $20,000 limit to $600 and removed the 200-payment requirement when the move was lumped into the American Rescue Plan, which passed when Democrats controlled both houses of Congress in 2021.

The change was separate from the 2022 Inflation Reduction Act funding that gave the IRS about $80 billion to hire new staff, according to Reuters.

The IRS initially delayed the tax law’s implementation by a year, which meant it would begin in 2023. Up until last week, the 1099-K change meant that about 44 million additional 1099-K forms would be sent out in January.

Then the IRS announced in a Nov. 21 news release that it would delay implementation for another year.

“We spent many months gathering feedback from third party groups and others, and it became increasingly clear we need additional time to effectively implement the new reporting requirements,” IRS Commissioner Danny Werfel said.

Continue reading here.

Scroll down for comments and share your thoughts!

Author

What do you think?

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Woke books by Elliot Page, Jemele Hill, and a 'queer western' flop after publishing houses paid massive advances

Black Votes Matter