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IRS Delays $600 Reporting Rule
The Internal Revenue Service has delayed a rule that would require gig workers to report earnings of $600.
The American Rescue Plan of 2021 implemented new rules that would significantly lower the amount of yearly earnings online platforms would have to report, from 20,000 to a mere 600. The rules were initially set to go into effect for the 2022 tax year
After significant pushback from lawmakers, as well as concerns in the industry at large, the IRS has decided to delay implementation until the 2023 tax year.
“The IRS and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan,” said Acting IRS Commissioner Doug O’Donnell. “To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes. The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements.”
Thanks to the delay, entrepreneurs and gig workers will get a bit of a reprieve…at least for a year.
IRS Delays $600 Reporting Rule
Matt Milano
from WebProNews https://ift.tt/BouRcUH
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