The IRS has announced a change in threshold reporting requirements for 2024, affecting small businesses using online platforms like eBay, PayPal, Etsy, Venmo, and CashApp. The current threshold is set at $5,000 for the year but will decrease significantly to $2,500 in 2025 and further drop to $600 in 2026.

Vice President of Federal Government Relations Jeff Brabant commented on the situation: “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.”

Brabant explained that under this requirement anyone using an online platform to send more than $600 would need to register transactions with the IRS. He urged Congress to repeal this requirement: “NFIB urges Congress to provide relief for Main Street by immediately repealing this burdensome requirement.”

There is a call for action urging Congress to restore the original threshold of $20,000 and 200 transactions. Advocates are pushing for a reduction in what they see as costly and unnecessary government regulations impacting small business owners.