Proposed rules that would increase the reporting threshold for individuals who use e-commerce platforms for business are one step closer to being released.
The White House Office of Information and Regulatory Affairs Wednesday finished its review of the proposed rules (RIN: 1545-BR73), titled “Increase in threshold for requiring information reporting with respect to certain payees.”
The 2025 GOP tax-and-spending law requires e-commerce platforms like Venmo, PayPal Holdings Inc., and eBay Inc. to send 1099-K tax forms to users with more than $20,000 in transactions and a number that exceeds 200. The law increased the $600-per-transaction threshold set by a 2021 law, which sparked backlash from Democrats, Republicans, and a lobbying push by the companies.
A 1099-K form is a report of payments taxpayers who earned income freelancing or as a gig worker made throughout the year, sent by payment card companies, payment apps, and online marketplaces to both the IRS and the taxpayers.
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Posted by Tax_Ninja