The implementation of a new IRS reporting requirement that would impact transactions of only $600 on platforms like PayPal has been delayed for a year.

Sens. Joe Manchin, D-W.Va., and Shelley Moore Capito, R-W.Va., both have pushed for the delay of the requirement, which was a part of the American Rescue Plan.

The requirement, which was set to go into effect for the 2022 tax year, would lower the threshold needed on money transaction platforms in order to receive a 1099K from the IRS from the current $20,000 a year plus at least 200 transactions to only $600.

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

“I am pleased the Treasury Department and the IRS listened to my request to delay the 1099K reporting requirement that will harm small businesses and individuals who sell goods online across America,” Manchin said after the IRS announced the delay late last week. “This will allow Congress more time to correct this regulation that puts undue burden on our small businesses. I will continue working with Treasury and my bipartisan colleagues to find a permanent solution that supports our small businesses in West Virginia and across America.”

Capito was also quick to react.

“This very provision was included in the American Rescue Plan that was passed with only Democrat support two years ago,” she said. “Republican efforts to repeal these new requirements have been ignored by my Democrat colleagues until the past week when they realized the massive complications that would ensue this tax filing season.”

Capito said she was happy about the IRS one-year delay and she has been pushing an amendment for that delay.

“But I am concerned about what authority they have to enforce their delay and will continue working to find a lasting solution,” she said.

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

“After nearly 2 years of relentless efforts to fix this issue and absolute failure by Congressional Democrats to address the problem they created, the Biden administration is taking the legally dubious step to delay implementation of the 1099-K reporting requirements for one year,” Miller said in a statement after the delay announcement. “This is a great relief for taxpayers, small businesses, payment platforms, online marketplaces, and the Internal Revenue Service, who will all be saved from an avalanche of tax forms that were expected to hit in just a number of days. Now, tens of millions of taxpayers are left in limbo as the courts will need to decide the legality of this action from the Biden administration. Congress must act immediately to enshrine the former $20,000 and 200 transaction threshold into law permanently.”

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