Miller's Statement on the Delay of 1099-K Requirements for an Additional Tax Year

WASHINGTON, D.C. –  Congresswoman Carol Miller (R-WV) released the following statement on the illegal delay of the implementation of the 1099-K requirements for an additional tax year from the Internal Revenue Service (IRS).

Based on today's announcement from the IRS, implementation of the 1099-K requirements will be delayed for the 2023 tax year at the threshold of $20,000 and then will implement a $5,000 threshold for the 2024 tax year which will immensely hurt taxpayers and independent contractors who use online services, payment platforms, and marketplaces. The IRS does not have the authority to delay implementation of the policy or set a new threshold contrary to what is passed into law by Congress. 

“The IRS is completely out of control and must be held accountable as they continue to make up the law as they go. Last year, the IRS took the legally dubious action of delaying implementation of the lower 1099-k threshold for 2022. Now they’ve done it yet again, giving Americans taxpayers no certainty on what the future of this policy will hold. The Biden Administration must be reminded that Congress writes the laws, they are the ones who must correctly implement them.
 
Congress must give taxpayers the certainty they deserve when using online payment platforms and participating in the gig economy. That is why I introduced the Saving Gig Economy Taxpayers Act. This bill will keep the reporting requirement at $20,000 and over 200 transactions,  protecting Americans who use online payment platforms, gig economy workers, and small e-commerce sellers from being taken advantage of by the IRS and will ensure they have access to modern financial services platforms. This bill has already passed the Ways and Means Committee and stands ready for a vote on the House floor and swift passage in the Senate.
 
While I am strongly opposed to lowering the reporting requirement from $20,000 to $600, that is the law that was passed with only Democrat votes and signed by President Biden in the American Rescue Plan. The IRS illegally delaying the implementation of this draconian Democrat policy for another year and then illegally setting a new threshold for 2024 is a dirty political trick meant to bolster the campaign of a failing President. When the Administration realized their folly would mean over 44 million Americans would receive tax forms they likely don’t deserve, they should’ve come to Congress to work on a solution. Instead, Biden again kicks the can down the road for the next President to deal with when he is defeated in the 2024 election.
 
At the end of the day, it's not enough to delay the implementation of this terrible policy, we must fully repeal it. With the Republican Majority and the IRS’s questionable action to delay the policy, Democrats must come to the table and raise this threshold to the time-tested standard of $20,000 and over 200 transactions, instead of relying on illegal actions by bureaucrats.”


Background:
For the past two years, Congresswoman Miller has been working to fix a liberal tax increase in the American Rescue Plan which lowers the threshold requirements for Americans to receive a 1099-K form from the IRS for an additional year. She introduced the Saving Gig Economy Taxpayers Act which returns the 1099-K reporting requirement to the time tested $20,000 and 200 separate transactions from the Democrats' lowered threshold of just $600. 

In April, the IRS Commissioner Danny Werfel admitted the 1099-K threshold should change back to $20,000 when he said “a change in the threshold would be easier to administer.” Learn more here. 

The Saving Gig Economy Taxpayers Actpassed the Ways and Means Committee in a major bill package. 

###