Sen. Capito, Rep. Miller introduce bill to delay tax form provision in American Rescue Plan

U.S. Sen. Shelley Moore Capito (R-WV) and Rep. Carol Miller (R-WV) introduced legislation to delay the implementation of a provision in the American Rescue Plan that lowers the threshold to receive a 1099-K form from the Internal Revenue Service (IRS).

Their bill, the Emergency Taxpayer Paperwork and Audit Relief Act, will provide House with more time to raise this threshold. Prior to the American Rescue Plan, 1099-K forms were issued by the IRS to taxpayers who exceeded 200 transactions totaling $20,000 in a tax year. The American Rescue Plan changed the reporting requirements, and now any electronic payments and transactions from online platforms, apps, or payment card processors equal to $600 will qualify for the 1099-K requirement.

“The Democrats’ so-called ‘American Rescue Plan,’ which contributed largely to our high inflation economy, also included a new tax liability for tens of millions of Americans starting this upcoming filing season,” Capito said. “If Democrats who voted for the American Rescue Plan get their way, you may now be facing additional taxes because you received money from friends or family through payment apps like Venmo and Paypal or sold tickets to a concert or sporting event. It would also give the government access to any information regarding transactions exceeding $600, regardless of intent. My legislation would immediately delay the implementation of this burdensome and intrusive change to our tax code and protect West Virginians from unnecessary oversight from the federal government.”

The bill is supported by several organizations, including Americans for Tax Reform, the National Taxpayers Union, and the National Federation of Independent Businesses.

“Democrats in Congress have failed the American people by ignoring an issue they created to fund their ridiculous spending bills,” Miller said. “I introduced the Saving Gig Economy Taxpayers Act in May of 2021 to restore the threshold to levels that were working just fine before Democrats complicated the system and gave taxpayers new headaches. Democrats refused to negotiate a compromise to fix this issue over the last year, meaning tens of millions of taxpayers will receive an unexpected 1099-K form from the IRS in January if a solution is not found by December 31st. The Emergency Taxpayer Paperwork and Audit Relief Act that I introduced today with Senator Capito will delay the implementation of the Democrat’s onerous reporting requirements for one year, giving a Republican-controlled House of Representatives time to fix the issue that Democrats refuse to address and saving West Virginia taxpayers from the pain of inept Democrat governance.