The U.S. House Ways and Means Committee has approved a bill that aims to cut IRS red tape for small businesses. If passed, a provision of the Small Business Jobs Act would raise the reporting threshold for IRS Form 1099-NEC from $600 to $5,000. This could eliminate headaches and extra costs by fixing an IRS reporting rule that hasn’t been adjusted for inflation for “almost 70 years,” according to a House press release. Currently, business owners are required to send tax forms to independent contractors that provide more than $600 of work to their businesses. The higher threshold would offer these business owners relief. The bill will likely face headwinds when it moves to the U.S. Senate.
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