According to multiple news outlets, the Internal Revenue Service has put a one-year pause on a controversial new rule that would have required gig workers to report payments of at least $600 received through e-commerce platforms like Venmo.
In this photo illustration, the logo ofPayPal is displayed on a phone screen. The photo illustration was created by Pavlo Gonchar.
The new rule was supposed to take effect for income received this year, but was changed to take effect in 2022.
If the person had at least $600 worth of sales, they would have to report it.
The yearlong delay was made to give taxpayers more time to prepare and understand the new reporting requirements, according to the acting IRS Commissioner.
Some people think that split expenses such as rent payments made over Venmo will have to be reported.
Concerns were raised about how the IRS would deal with a lot of Form 1099-K reports.
Forbes requested a response from the IRS.
The $600 reporting policy was approved by the Democrats. The previous IRS rule only required electronic payment platforms to send forms to people with more than 200 transactions a year. President Joe Biden's administration pushed for the new rule as part of its commitment to crack down on wealthy Americans who don't report their income, but it faced widespread criticism for potentially putting millions of lower- and middle-income workers in the crosshairs of enhanced reporting requirements Some Democrats wanted a higher threshold for the new rule.
The bipartisan amendment to raise the threshold from $600 to $10,000 failed as it did not have enough support.
Sixty five million. Upwork studied how many Americans participated in gig work over the course of a year.
IRS Delays Gig- Tax Filing Rule for Side Hustles of More Than $600.
The Senate didn't like the amendment that would have raised the limit.
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