New IRS requirement for mobile device money transactions delayed - Bluefield Daily Telegraph

The implementation of a caller IRS reporting request that would interaction transactions of lone $600 connected platforms similar PayPal has been delayed for a year.

Sens. Joe Manchin, D-W.Va., and Shelley Moore Capito, R-W.Va., some person pushed for the hold of the requirement, which was a portion of the American Rescue Plan.

The requirement, which was acceptable to spell into effect for the 2022 taxation year, would little the threshold needed connected wealth transaction platforms successful bid to person a 1099K from the IRS from the existent $20,000 a twelvemonth positive astatine slightest 200 transactions to lone $600.

A 1099 is usually filed by autarkic contractors and for rental income, for example.

“I americium pleased the Treasury Department and the IRS listened to my petition to hold the 1099K reporting request that volition harm tiny businesses and individuals who merchantability goods online crossed America,” Manchin said aft the IRS announced the hold precocious past week. “This volition let Congress much clip to close this regularisation that puts undue load connected our tiny businesses. I volition proceed moving with Treasury and my bipartisan colleagues to find a imperishable solution that supports our tiny businesses successful West Virginia and crossed America.”

Capito was besides speedy to react.

“This precise proviso was included successful the American Rescue Plan that was passed with lone Democrat enactment 2 years ago,” she said. “Republican efforts to repeal these caller requirements person been ignored by my Democrat colleagues until the past week erstwhile they realized the monolithic complications that would ensue this taxation filing season.”

Capito said she was blessed astir the IRS one-year hold and she has been pushing an amendment for that delay.

“But I americium acrophobic astir what authorization they person to enforce their hold and volition proceed moving to find a lasting solution,” she said.

Rep. Carol Miller, R-1st District, was besides urging the IRS to hold the implementation.

“After astir 2 years of relentless efforts to hole this contented and implicit nonaccomplishment by Congressional Democrats to code the occupation they created, the Biden medication is taking the legally dubious measurement to hold implementation of the 1099-K reporting requirements for 1 year,” Miller said successful a connection aft the hold announcement. “This is simply a large alleviation for taxpayers, tiny businesses, outgo platforms, online marketplaces, and the Internal Revenue Service, who volition each beryllium saved from an avalanche of taxation forms that were expected to deed successful conscionable a fig of days. Now, tens of millions of taxpayers are near successful limbo arsenic the courts volition request to determine the legality of this enactment from the Biden administration. Congress indispensable enactment instantly to enshrine the erstwhile $20,000 and 200 transaction threshold into instrumentality permanently.”

Capito and Miller past week introduced the Emergency Taxpayer Paperwork and Audit Relief Act, asking for the delay.

— Contact Charles Boothe astatine cboothe@bdtonline.com