Big thread (
https://gametz.com/General/tax-reporting-paypal-ve...) got closed.
Don't remember what I filled out where or when, but have recieved two emails recently:
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Dear Mr. Bean,
Thank you for your letter on the 1099-K reporting threshold. This is an important issue that will impact many people in Ohio and across the country. I’m grateful to hear from my constituents about it. I agree with you and I oppose this change in policy.
As you know, Form 1099-K is an information form typically provided to individuals or small business owners that receive payments via a third-party payment system like PayPal, Apple Pay, or Venmo. The minimum reporting threshold for the form was changed as part of the American Rescue Plan. The previous threshold required reporting for gross payments where there were over 200 transactions that totaled at least $20,000 per year. The new threshold requires reporting transactions in excess of $600 with no minimum number of transactions.
While I understand the motivation behind this new policy, I believe it would needlessly subject American families to excessive paperwork requirements. It also validates the premise that the IRS needs to be checking up on everyday Americans for their routine transactions like rent, car payments, and furniture expenses. The IRS already gathers droves of information on taxpayers each year during filing season.
In my view, the IRS should be focused on scrutinizing international corporations who shield intangible income, large corporations who pay no income tax, and high-net-worth individuals who play by different rules. These areas are ripe for the IRS to close the tax gap and ensure better revenue collection. Instead, the agency is putting average Americans who faithfully pay their taxes through excessive and undue scrutiny for engaging in digital money transfers.
Thankfully, the IRS delayed implementing the new threshold until at least the end of 2023. Hopefully, they will reconsider this policy in the midst of staunch opposition. I am working with my colleagues in the Senate to determine the best way to address this issue. My staff and I have been closely reviewing the policy. We have had several productive meetings with constituents and stakeholders to learn about how this policy will impact them, their livelihoods, and Ohio as a whole.
The input of constituents like you has been invaluable in helping me develop an informed opinion on the subject. I hope you will continue to communicate with me on important policy matters.
Sincerely,
JD Vance
United States Senator
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Dear Mr. Bean,
Thank you for contacting my office regarding the 1099-K reporting threshold. I appreciate your engagement on this issue. I have always said though it was my name on the ballot, we are all going to Congress. Bringing our community’s voice to Washington is only possible when I hear from you about the issues important to you — thank you for doing your part and for the opportunity to share my thoughts with you on this matter.
As part of the American Rescue Plan Act of 2021, Congress lowered the 1099-K reporting threshold from $20,000 to $600. The Internal Revenue Service (IRS) announced a delay in the implementation of the change - the threshold was originally scheduled to take effect for filing 2022 taxes, but will now take effect for filing 2023 taxes.
Members of both parties have previously introduced legislation to address this concern, including H.R. 488, the SNOOP (Stop the Nosy Obsession with Online Payments Act) in this 118th Congress, and H.R. 7079, the Cut Red Tape for Online Sales Act from the 117th Congress. While I am not on the House Committee on Ways and Means, where this legislation is being considered, I will continue to monitor its progression through Congress.
By selling used goods online, Ohioans are able to take advantage of a much-needed economic lifeline. These transactions, which are not creating taxable income, should not be triggering IRS reporting requirements. I believe the reporting threshold should be increased to guarantee burdensome and complicated reporting requirements do not result in a seller’s incorrect overpayment or ineligibility for certain tax benefits.
Knowing your views helps inform my decision-making, and your message will be carefully considered as the U.S. House of Representatives reviews and votes on related legislation. Thank you again for contacting me about the issues that are most important to you, and please do not hesitate to reach out again if you have future thoughts or concerns as the legislative session continues.
It is my honor to serve our community in Congress. For a full list of services my office provides and how to get in touch, please visit sykes.house.gov/services. If I can ever be of assistance, please do not hesitate to reach out.
Sincerely,
Rep. Emilia Strong Sykes
Ohio’s 13th Congressional District