Miller, Capito Statement on the Delay of 1099-K Requirements for an Additional Year

WASHINGTON, D.C. - Today, Congresswoman Carol Miller (R-WV) and Senator Shelley Moore Capito (R-WV) released the following statement regarding the delay of the 1099-K requirements for an additional year from the Internal Revenue Service.

“After nearly 2 years of leading Republicans’ relentless efforts to fix this issue and Congressional Democrats abdicating their responsibility to address the problem they created, the Biden Administration is taking the legally dubious step to delay implementation of the 1099-K reporting requirements for one year,” said Congresswoman Carol Miller. “This delay is a great relief for taxpayers, small businesses, payment platforms, online marketplaces, and the Internal Revenue Service, who will all be saved from an avalanche of tax forms that were expected to hit in just a number of days. While I’m supportive of this action, due to this Administration’s gross incompetence, it is forced to delay implementation of a law that the Department of Treasury recommended Congress pass and President Biden signed into law himself. This action is inadequate, as tens of millions of taxpayers are still left in limbo as the courts will need to decide the legality of this action from the Biden Administration. Congress must act immediately to enshrine the former $20,000 and 200 transaction threshold into law permanently.”

“This very provision was included in the American Rescue Plan that was passed with only Democrat support two years ago," said Senator Shelley Moore Capito. "Republican efforts to repeal these new requirements have been ignored by my Democrat colleagues until the past week when they realized the massive complications that would ensue this tax filing season. I am glad that the IRS moved to issue the exact one-year delay I have been pushing for by offering an amendment this week to delay for a year, but I am concerned about what authority they have to enforce their delay and will continue working to find a lasting solution."

"The Biden Administration is backpedaling to protect Democrats from the consequences of their own actions," said Grover Norquist, President of Americans for Tax Reform. "This likely illegal action from Joe Biden's IRS is clearly politically timed, coming just one day after Senate Democrats blocked a Republican amendment to delay the new 1099-K thresholds. Congress must provide certainty to taxpayers by acting early next year to permanently restore the prior threshold of $20,000 and 200 transactions."

Background:
Over the past two years Congresswoman Miller has worked to fix this unbearable Democrat-created tax on working class West Virginians.

In May of 2021, Congresswoman Miller introduced the Saving Gig Economy Taxpayers Act, which would repeal an unnecessary tax hike included in the costly and partisan American Rescue Plan. The bill would protect everyday Americans using online payment platforms, gig economy workers and small e-commerce sellers from being taken advantage of, and ensure they continue to have access to flexible and reliable income streams.

Last week, 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 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.

Today, the Internal Revenue Service (IRS) announced a delay in the implementation of the 1099-K reporting requirement for one year. They did not state where the IRS receives the authority to usurp the direction of Congress on the implementation of tax policy.

Democrats in Congress have refused to acknowledge the problem they created or negotiate a solution and it is now up to the Republican-led House of Representatives to fix this issue next year. 

Senator Shelley Moore Capito Background:
Senator Capito is a cosponsor of the Stop the Nosy Obsession with Online Payments, or SNOOP Act, legislation to strike the tax code provision inserted by in the American Rescue Plan that requires third-party payment platforms to report businesses’ gross transaction volumes totaling more than $600 to the IRS. Senator Capito is also a cosponsor cosponsored S. 4817, which would prevent the IRS from using any of the $80 billion included in the Inflation Reduction Act funding to conduct audits of taxpayers making less than $400,000. Recently, Senator Capito supported an amendment which would have repealed the reporting threshold.
 

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