WASHINGTON, D.C. – U.S. Senators Sherrod Brown and Bill Cassidy today introduced the Red Tape Reduction Act, legislation that will increase the threshold for when individuals and entrepreneurs receive 1099-K tax forms when they sell goods online.The Red Tape Reduction Act will raise the threshold to $10,000 from $600, ensuring that fewer small businesses and casual sellers receive excessive paperwork for online sales.
“Ohio small businesses are frustrated with the 1099-K reporting threshold. This red tape hits small businesses and other Ohioans selling products online, sucking time and resources from the smallest online sellers,” said Brown. “By raising the threshold, we can prevent the IRS from interfering with minor transactions and cut down on excessive paperwork.”
“The cap the Biden administration implemented is hurting everyone from small business owners to people just trying to pay their rent,” said Dr. Cassidy. “This bill lifts that cap and prevents the IRS from spying on American taxpayers.”
Under current law, online sellers and small businesses will be required to complete a 1099-K form for any transaction over $600 starting next year. Sen. Brown has been working to find solutions to relieve this burden on small businesses. Last month, during a Senate Finance Committee hearing titled “The President’s Fiscal Year 2024 IRS Budget and the IRS’s 2023 Filing Season,” Brown pressed IRS Commissioner Daniel Werfel about the need for a higher threshold to help relieve burdens on small businesses and IRS.
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