WASHINGTON, D.C. — Today is the filing deadline to submit 2022 tax returns or file for an extension, as well as pay tax owed for most taxpayers.
Patrice Onwuka, director of the Center for Economic Opportunity (CEO), issued the following statement:
“This tax filing season could have been a colossal headache for millions of women. The IRS unilaterally delayed for one year the implementation of the Form 1099-K reporting requirement, but unless Congress acts, millions of taxpayers will deal with a massive tax disaster next year.
“As part of the 2021 multitrillion-dollar spending bill, liberal lawmakers in Congress voted to lower the threshold that triggers reporting income for goods or services sold online to just $600 (down from $20,000 and 200 transactions). Women are significantly affected. Through resale websites and marketplaces such as Etsy, eBay, and Poshmark, women are commonly selling pre-owned kids’ clothes, apparel, furniture, and workout equipment to supplement family budgets. They also use third-party payment platforms, like PayPal, Venmo or Cash App, to collect payments for services. Women depend on the extra cash to battle stubbornly-high inflation on essentials such as food and medicine.
“Next year, millions of people will be required to report income from the sale of items that they likely sold at a loss. This could freeze the online resale market, leave hard-working Americans cash-strapped, and introduce new complexity to otherwise simple tax filings. Taxpayers should not be straddled with confusing tax reporting that could lead to a tax bill. Congress has time to fix this unforced error by restoring the original $20,000 and 200 transaction threshold or raising the threshold above the measly $600 level.”