More than a dozen Republicans this week joined U.S. Rep. Carol Miller (R-WV) to reintroduce legislation that would repeal a tax form requirement on third-party payment platforms authorized under the enacted American Rescue Plan of 2021.
“I look forward to the passage of this bill on the House floor as soon as possible,” said Rep. Miller, who on Jan. 9 sponsored the Saving Gig Economy Taxpayers Act, H.R. 190, with 13 original cosponsors, including U.S. Reps. Vern Buchanan (R-FL), Ron Estes (R-KS), Mike Kelly (R-PA), Lloyd Smucker (R-PA), Adrian Smith (R-NE), Brad Wenstrup (R-OH), and Darin LaHood (R-IL).
If enacted, H.R. 190 would repeal the Form 1099-K reporting requirement in the American Rescue Plan that raised the $600 threshold to $20,000 and 200 separate transactions required for certain taxpayers to get a Form 1099-K from third-party payment platforms, according to a bill summary provided by Rep. Miller’s office.
“The Saving Gig Economy Taxpayers Act will protect Americans who use online payment platforms, gig economy workers, and small e-commerce sellers from being taken advantage of and will ensure they continue to have access to reliable income streams,” Rep. Miller said.
“Because of Democrats’ law change in the 1099-K form, an American getting rid of old exercise equipment from his garage online now qualifies as a salesman of workout equipment; a teenager babysitting the neighbors’ kids is in the childcare business; and roommates who split rent are now property managers and are all eligible to be taxed by the IRS,” she explained. “The Republican-led House will restore the 1099-K form threshold to levels that were working just fine before Democrats complicated the system.”
Rep. Miller in May 2021 first introduced the same-named H.R. 3425, which eventually garnered 40 GOP cosponsors. However, the measure stalled in the U.S. House Ways and Means Committee.
Following pressure from Rep. Miller and other Republicans, the IRS on Dec. 23, 2022, announced a delay in the reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season.
As a result of this delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower $600 threshold amount enacted as part of the American Rescue Plan, according to the IRS.