Two U.S. Senators seek a bipartisan fix to a widely criticized process. Senators Sherrod Brown (D-OH) and Bill Cassidy (R-LA) introduced the Red Tape Reduction Act to increase the threshold for issuing 1099-K forms for third-party payment transactions. Changes to the process have lowered the threshold that determines when a 1099-K form must be issued from $20,000 to $600 for the 2023 tax year. This adds IRS interference and increases the burden on businesses, “sucking time and resources from the smallest online sellers,” Brown said in a press release. The bill, which would raise the threshold to $10,000, “lifts the cap and prevents the IRS from spying on American taxpayers,” Cassidy added.
Our Blog 