Can the IRS handle the influx of returns that the new Form 1099-K reporting requirements are expected to generate? Two Republican House Ways and Means Committee members have asked the Government Accountability Office to examine just that. Under the American Rescue Plan Act, third-party settlement organizations, such as PayPal, must file Forms 1099-K with the IRS if recipients surpass $600 in payments. Under previous law, the threshold was more than 200 transactions and $20,000 in payments. President Biden delayed the implementation of the reporting requirements for one year (to 2023) following an outcry from gig economy workers over what they perceived as problematic new paperwork.
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