WASHINGTON, D.C. – The Internal Revenue Service (IRS) announced today that it is delaying the new $600 Form 1099-K reporting threshold for third-party settlement organizations for calendar year 2023.
Patrice Onwuka, director of the Center for Economic Opportunity (CEO) at IWF, issued the following statement:
“Leave it to the IRS to try to fix what Congress broke. The $600 reporting threshold for Venmo, eBay, and Etsy transactions was way too low and will have a devastating impact on women, especially moms. To combat elevated inflation—brought on by excessive federal spending—many women are selling used kids’ clothes online. Others send family members cash gifts or reimburse friends for dinner through Venmo. These are likely not taxable transactions, but this rule would bury Americans under a dizzying 44 million new tax forms this year. In what world is saddling struggling moms and hardworking middle-class households with reams of confusing new paperwork (and a possible tax bill) a common-sense policy?
“While the IRS unilaterally delayed the rule for a second year, it plans a phased-in implementation. The agency knows that it is woefully unprepared for the avalanche of errors and tax filer adjustments that await. Congressional Democrats created this problem when they squeezed working-class households to fund the nearly $2 trillion American Rescue Plan Act. It’s time that they come together with conservatives to fix this problem for good by repealing the rule and returning to the previous $20,000 and 200 transaction limit or at least a level far above $600.”