The National Federation of Independent Business (NFIB) has issued a statement concerning the Internal Revenue Service's (IRS) recent decision to set the threshold for Form 1099-K reporting requirements at $5,000 for annual transactions in 2024. However, the IRS plans to lower this threshold to $2,500 in 2025 and further reduce it to $600 in 2026 for online platforms such as eBay, PayPal, Etsy, Venmo, and CashApp.
Jeff Brabant, Vice President of Federal Government Relations at NFIB, commented on the announcement: “While this IRS announcement sets the threshold for 2024 and prevents many Americans and small businesses from being inundated with new Form 1099-K reporting requirements, it doesn’t stop the main problem of the upcoming onerous $600 requirement.” He highlighted that this requirement would compel anyone using an online platform to report transactions exceeding $600 to register them immediately with the IRS. This could include payments for rent, groceries, or concert tickets.
Brabant urged Congress to take action: "NFIB urges Congress to provide relief for Main Street by immediately repealing this burdensome requirement."
