End TPSOs tax on small business transactions of $5000

Economy
1

Put a stop to this change to information reporting for Form 1099-K is a policy that is part of the American Rescue Plan, which was passed in 2021 and initially intended to increase tax compliance. Presently, TPSOs such as Venmo, Cash App, Etsy, StubHub and Airbnb are required to provide individuals (and the IRS) with a Form 1099-K if they received more than $20,000 in the current tax year and had completed more than 200transactions in the calendar year. This policy was originally supposed to be implemented in 2023 and change 1099-K information reporting by removing the transaction requirement and reducing the $20,000 threshold down to $600.

On November 21, 2023, in Notice 2023-74, the IRS decided to further delay the implementation of this reporting change until the 2024 tax year and increase the $600 threshold to $5,000. This is a positive development for most taxpayers, as those with more than $600 but less than $5,000 in transactions will not experience this new tax reporting to the IRS until tax year 2024.

We must end this tax, which only hurts Americans with small businesses run on internet platforms such as EBay, or Airbnb using PayPal, Venmo, Zelle or other online payment processors. Small side businesses run by people who need the extra money are seeing what small profits they already make drastically decreased by this unnecessary redundant tax.

2

It’s not just that, it’s ebay sellers who are not businesses, for example. My mother dies and left a sizable amount of items that I am trying to sell on eBay. So now I would have to pay taxes on those sales (like income tax). These are all used items. I have no receits as I didn’t buy them, so how do you show cost. That makes no sense at all. Remove this burden, raise it back to 20K and problem is basically solved. It’s been 20K for many years now. Might even make sense to raise the reporting to track with inflation, therefore 40K would make better sense.