Carol Miller Introduces Legislation to Repeal Democrats’ 1099-K Requirements on Gig Economy Workers

WASHINGTON, D.C. (LOOTPRESS) – Yesterday, Congresswoman Carol Miller (R-WV) re-introduced the Saving Gig Economy Taxpayers Act, which would repeal an unwarranted and unfair tax hike in the American Rescue Plan. The bill has the support of 13 returning Republicans on the House Ways and Means Committee.

For the past two years, Congresswoman Miller has been working with Republicans to fix another liberal tax increase in the American Rescue Plan which targets hardworking taxpayers and independent contractors who use online services, payment platforms, and marketplaces. This bill will return the 1099-K reporting requirement to the time tested $20,000 and 200 separate transactions from the Democrats’ disastrous budget gimmick, which lowered the threshold to just $600. Democrats in Congress won’t acknowledge the tax nightmare they’ve created for working class Americans and failed to fix the issue in the FY23 omnibus spending package, leaving taxpayers days away from disaster. Due to 18 months of pressure led by Congresswoman Carol Miller, the IRS took the legally dubious step to unilaterally delay the implementation for one year, denying taxpayers the certainty they deserve.

“The Saving Gig Economy Taxpayers Act will protect Americans who use online payment platforms, gig economy workers, and small e-commerce sellers from being taken advantage of and will ensure they continue to have access to reliable income streams,” said Congresswoman Carol Miller. “Because of Democrats law change in the 1099-K form, an American getting rid of old exercise equipment from his garage online now qualifies as a salesman of workout equipment, a teenager babysitting the neighbors’ kids is in the childcare business, and roommates who split rent are now property managers, and are all eligible to be taxed by the IRS. The Republican led House will restore the 1099-K from threshold to levels that were working just fine before Democrats complicated the system. I look forward to the passage of this bill on the House floor as soon as possible.”

Joining Congresswoman Carol Miller as Original Co-Sponsors supporting H.R. 190 – Saving Gig Economy Taxpayers Act: Vern Buchanan, Drew Ferguson, Ron Estes, Mike Kelly, Jodey Arrington, David Schweikert, Greg Murphy, David Kustoff, Lloyd Smucker, Adrian Smith, Brad Wenstrup, Darin LaHood, and Kevin Hern.

Click Here to Read Bloomberg Tax Exclusive on the Saving Gig Economy Taxpayers Act.

Background:
Before this excessive change in the law, Taxpayers would have to earn at least $20,000 and have at least 200 transactions to qualify for a 1099-K form if they made money through an e-commerce platform or worked as an independent contractor through a gig economy app. The American Rescue Plan included a provision to lower this threshold to $600 a year with no minimum on the number of transactions, effectively raising taxes on America’s hardworking gig economy workers.

Congresswoman Carol Miller introduced this bill (H.R. 3425 in the 117th Congress), in May of 2021. In December of 2022, Congresswoman Carol Miller (R-WV) and Senator Shelley Moore Capito (R-WV) introduced the Emergency Taxpayer Paperwork and Audit Relief Act, to delay the implementation of the Democrat budget gimmick in the American Rescue Plan for an additional year. Given this pressure, the Internal Revenue Service (IRS) announced a delay in the implementation of the 1099-K reporting requirement for that additional year, days before the policy was set to go into effect.