Staff Reports
The IRS has just announced that it will be delaying the implementation of a new rule that would have forced hardworking Americans to report any income over $600 that they earn through popular payment apps like Venmo and Paypal. This rule, which was pushed through by the Democrats in Congress without any Republican support, is just another intrusive and burdensome regulation that the Biden administration is trying to impose on the American people.
IRS delays implementing $600 reporting rule for Venmo, PayPal payments https://t.co/7FJEZqZYtw pic.twitter.com/M470HRdJEH
— New York Post (@nypost) November 22, 2023
The controversial tax-reporting rule, which received no Republican votes when it was approved by Democrats in Congress, would have resulted in an additional 44 million 1099-K forms being sent out by the IRS. That’s 44 million more forms for honest, everyday Americans to fill out and send to the government – talk about big government overreach!
But thankfully, the IRS has seen the light and decided to delay the implementation of this rule for another year. They recognize that this new reporting requirement is causing confusion and unnecessary burden on taxpayers and tax professionals. The IRS Commissioner, Danny Werfel, even said that they need more time to effectively implement these new requirements. Thank goodness someone at the IRS has some common sense!
Under this delay, users of payment apps will not be required to fill out 1099-K forms in 2023 unless they received over $20,000 in income and engaged in more than 200 transactions. This is a small victory for the hardworking Americans who use these apps for their everyday transactions. The IRS is also planning to phase in the reporting threshold over the next two years, with a $5,000 threshold for tax year 2024 and presumably the $600 threshold in tax year 2025. While it’s not a complete victory, it’s a step in the right direction.
Critics of the rule change, including the Coalition for 10-99-K Fairness, have raised privacy concerns about forcing third-party payment apps to reveal details of user transactions to the government. They argue that this rule unfairly burdens casual online sellers and microbusinesses. And they’re absolutely right! The Biden administration is once again overstepping its bounds and trying to squeeze every last dollar out of hardworking Americans.
While the Biden administration claims that this rule is meant to crack down on tax evasion, it’s clear that it’s just another way for them to control and monitor the financial activities of everyday Americans. But thanks to the IRS delay, hardworking Americans have been given a brief reprieve from this burdensome regulation. Here’s hoping that the IRS, and the Biden administration, come to their senses and realize that the American people don’t need more government intrusion in their lives.
