Wednesday December 7, 2022 – I have been shouting from the roof tops about the $600 limit for 1099K reporting I have even predicted that, once taxpayers are faced with this monstrosity, Congress would take action to reverse it.
Well, today a Democratic Congressman, from Illinois no less, Raja Krishnamoorthi, sponsored legislation to “radically increase the threshold” from $600.00.
The IRS has been on a propaganda campaign to alert taxpayers that this new rule is coming…and coming soon.
Remember, the Affordable Care Act originally included a provision that required businesses to report every purchase from a single vendor over $600. That provision was quickly repealed – Before it went into effect. At the time, IRS Taxpayer Advocate Nina Olson, reported that costs to businesses would drastically outweigh the expected revenue ($19 billion over 10 years).
Attorney Steven A. Leahy does not take too many bows for the accurate prediction in Today’s Tax Talk.