Miller, Capito Introduce Emergency Bill to Save West Virginia Taxpayers
December 16, 2022
WASHINGTON, D.C. - Today, Congresswoman Carol Miller (R-WV) and Senator Shelley Moore Capito (R-WV) introduced the Emergency Taxpayer Paperwork and Audit Relief Act, to delay the implementation of the Democrat budget gimmick in the American Rescue Plan that lowers the threshold for Americans to receive a 1099-K form from the IRS for an additional year. Before this year, the threshold was $20,000 and 200 separate transactions. The Democrats lowered this to $600 with no transaction minimum to claim they paid for their out of control spending package, essentially raising billions of dollars in taxes on working class Americans and overloading the IRS with additional paperwork. This bill will allow the Republican-controlled House of Representatives more time to raise this threshold and prevent 30 to 50 million new forms from being sent out next month.
“Democrats in Congress have failed the American people by ignoring an issue they created to fund their ridiculous spending bills,” said Congresswoman Carol Miller. “I introduced the Saving Gig Economy Taxpayers Act in May of 2021 to restore the threshold to levels that were working just fine before Democrats complicated the system and gave taxpayers new headaches. Democrats refused to negotiate a compromise to fix this issue over the last year, meaning tens of millions of taxpayers will receive an unexpected 1099-K form from the IRS in January if a solution is not found by December 31st. The Emergency Taxpayer Paperwork and Audit Relief Act that I introduced today with Senator Capito will delay the implementation of the Democrat’s onerous reporting requirements for one year, giving a Republican-controlled House of Representatives time to fix the issue that Democrats refuse to address and saving West Virginia taxpayers from the pain of inept Democrat governance.”
“The Democrats’ so-called ‘American Rescue Plan,’ which contributed largely to our high inflation economy, also included a new tax liability for tens of millions of Americans starting this upcoming filing season,” said Senator Shelley Moore Capito. “If Democrats who voted for the American Rescue Plan get their way, you may now be facing additional taxes because you received money from friends or family through payment apps like Venmo and Paypal, or sold tickets to a concert or sporting event. It would also give the government access to any information regarding transactions exceeding $600, regardless of intent. My legislation would immediately delay the implementation of this burdensome and intrusive change to our tax code, and protect West Virginians from unnecessary oversight from the federal government.”
"Biden and Democrats thought they could come after Americans' PayPal and Venmo transactions without anyone noticing. People noticed," said Grover Norquist, President of Americans for Tax Reform. "This bill will prevent millions of taxpayers with more than $600 in transactions from third-party vendors from being told by Biden's IRS that they have a new tax liability this year. Thanks to the leadership of Rep. Miller and Sen. Capito, Republicans will have an additional year to implement a permanent fix to Democrats' failed policies."
“The $600 threshold for 1099-K information reporting is bound to confuse scores of taxpayers next year who participate in the digital economy, even for non-taxable transactions such as selling used items online at a loss," said Andrew Lautz, Director of Federal Policy, National Taxpayers Union. "Neither taxpayers nor the IRS are prepared for the deluge of paperwork, which is why NTU is glad to support Rep. Miller’s and Sen. Capito’s efforts to delay these reporting requirements for a year. This will buy Congress more time to work out a solution that ensures taxes owed are taxes paid while still limiting taxpayer confusion and paperwork burdens.”
“Small businesses that utilize third party payment platforms will soon be inundated with new paperwork as a result of the expanded Form 1099-K reporting requirements," said Kevin Kuhlman, Vice President of Federal Government Relations at National Federation of Independent Businesses. "NFIB opposed this expansion since it was buried at the last minute into the American Rescue Plan Act. The increased reporting will further complicate the already difficult tax compliance burden small businesses and individual filers face. Given the tight timeline as this Congress concludes, NFIB thanks Congresswoman Carol Miller and Senator Shelley Moore Capito for pushing to delay the reporting requirement for a year to provide more time to increase the thresholds and reduce the paperwork burden on small businesses. NFIB urges Congress to include this delay in the government funding legislation.”
Background:
Before the law change, a taxpayer would have to earn at least $20,000 and have at least 200 transactions to qualify for a 1099-K form if they made money through an e-commerce platform or worked as an independent contractor through a gig economy app. Congressional Democrats expanded this by eliminating the 200 transaction requirement entirely and lowering the $20,000 hurdle to just $600 in the American Rescue Plan Act of 2021.
An American getting rid of old exercise equipment from his garage online now qualifies as a salesman of workout equipment, a teenager babysitting the neighbors’ kids is in the childcare business, and roommates who split rent are now property managers. According to Democrats law change in the 1099-K form, all of these people are eligible to be unfairly taxed and will be more likely to be audited by the IRS.
Congresswoman Carol Miller previously introduced H.R. 3425, The Saving Gig Economy Taxpayers Act, which will return this threshold to the time tested standard. It has the support of every Republican on the House Ways and Means Committee. Democrats in Congress have refused to acknowledge the problem they created or negotiate a solution.
“Democrats in Congress have failed the American people by ignoring an issue they created to fund their ridiculous spending bills,” said Congresswoman Carol Miller. “I introduced the Saving Gig Economy Taxpayers Act in May of 2021 to restore the threshold to levels that were working just fine before Democrats complicated the system and gave taxpayers new headaches. Democrats refused to negotiate a compromise to fix this issue over the last year, meaning tens of millions of taxpayers will receive an unexpected 1099-K form from the IRS in January if a solution is not found by December 31st. The Emergency Taxpayer Paperwork and Audit Relief Act that I introduced today with Senator Capito will delay the implementation of the Democrat’s onerous reporting requirements for one year, giving a Republican-controlled House of Representatives time to fix the issue that Democrats refuse to address and saving West Virginia taxpayers from the pain of inept Democrat governance.”
“The Democrats’ so-called ‘American Rescue Plan,’ which contributed largely to our high inflation economy, also included a new tax liability for tens of millions of Americans starting this upcoming filing season,” said Senator Shelley Moore Capito. “If Democrats who voted for the American Rescue Plan get their way, you may now be facing additional taxes because you received money from friends or family through payment apps like Venmo and Paypal, or sold tickets to a concert or sporting event. It would also give the government access to any information regarding transactions exceeding $600, regardless of intent. My legislation would immediately delay the implementation of this burdensome and intrusive change to our tax code, and protect West Virginians from unnecessary oversight from the federal government.”
"Biden and Democrats thought they could come after Americans' PayPal and Venmo transactions without anyone noticing. People noticed," said Grover Norquist, President of Americans for Tax Reform. "This bill will prevent millions of taxpayers with more than $600 in transactions from third-party vendors from being told by Biden's IRS that they have a new tax liability this year. Thanks to the leadership of Rep. Miller and Sen. Capito, Republicans will have an additional year to implement a permanent fix to Democrats' failed policies."
“The $600 threshold for 1099-K information reporting is bound to confuse scores of taxpayers next year who participate in the digital economy, even for non-taxable transactions such as selling used items online at a loss," said Andrew Lautz, Director of Federal Policy, National Taxpayers Union. "Neither taxpayers nor the IRS are prepared for the deluge of paperwork, which is why NTU is glad to support Rep. Miller’s and Sen. Capito’s efforts to delay these reporting requirements for a year. This will buy Congress more time to work out a solution that ensures taxes owed are taxes paid while still limiting taxpayer confusion and paperwork burdens.”
“Small businesses that utilize third party payment platforms will soon be inundated with new paperwork as a result of the expanded Form 1099-K reporting requirements," said Kevin Kuhlman, Vice President of Federal Government Relations at National Federation of Independent Businesses. "NFIB opposed this expansion since it was buried at the last minute into the American Rescue Plan Act. The increased reporting will further complicate the already difficult tax compliance burden small businesses and individual filers face. Given the tight timeline as this Congress concludes, NFIB thanks Congresswoman Carol Miller and Senator Shelley Moore Capito for pushing to delay the reporting requirement for a year to provide more time to increase the thresholds and reduce the paperwork burden on small businesses. NFIB urges Congress to include this delay in the government funding legislation.”
Background:
Before the law change, a taxpayer would have to earn at least $20,000 and have at least 200 transactions to qualify for a 1099-K form if they made money through an e-commerce platform or worked as an independent contractor through a gig economy app. Congressional Democrats expanded this by eliminating the 200 transaction requirement entirely and lowering the $20,000 hurdle to just $600 in the American Rescue Plan Act of 2021.
An American getting rid of old exercise equipment from his garage online now qualifies as a salesman of workout equipment, a teenager babysitting the neighbors’ kids is in the childcare business, and roommates who split rent are now property managers. According to Democrats law change in the 1099-K form, all of these people are eligible to be unfairly taxed and will be more likely to be audited by the IRS.
Congresswoman Carol Miller previously introduced H.R. 3425, The Saving Gig Economy Taxpayers Act, which will return this threshold to the time tested standard. It has the support of every Republican on the House Ways and Means Committee. Democrats in Congress have refused to acknowledge the problem they created or negotiate a solution.
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