Congressman Krishnamoorthi Applauds IRS Decision to Delay Lowering of Threshold for Form 1099-K Reporting Following His Bipartisan Advocacy With Colleagues

WASHINGTON – Congressman Raja Krishnamoorthi issued the following statement in response to the decision by the Internal Revenue Service (IRS) to delay lowering the threshold for Form 1099-K reporting by one year, an announcement which follows a bipartisan letter sent by Congressman Raja Krishnamoorthi and colleagues on December 19^th.

"I'm glad to see the IRS postpone the implementation of the new reporting requirements for Form 1099-K issuance," said Congressman Krishnamoorthi. "Lowering the threshold from $20,000 to $600 would hurt millions of American taxpayers who participate in online marketplaces and other e-commerce platforms. While working families struggle with extreme price hikes and other economic challenges, the selling of used goods has become even more common, making this the worst possible time to create unnecessary confusion and stress for struggling Americans. Furthermore, the change would place an additional burden on the IRS as millions of new forms would have to be processed, even when no reportable income is generated. I look forward to continuing to work with the IRS in the coming weeks to identify a more permanent solution to lowering the reporting threshold in a way that doesn't increase the already difficult tax compliance burden faced by many American taxpayers."

Congressman Krishnamoorthi signed a bipartisan letter to House leadership that was sent on December 19^th, calling for a significant raise of the new threshold to prevent millions of new 1099-K forms from being issued to taxpayers. You can read the full letter here.