Fixing another liberal tax burden – The Hill

As part of last years reckless stimulus spending bill, congressional Democrats snuck in a last-minute paperwork nightmare for taxpayers in West Virginia and nationwide. Most people have never seen a 1099-K form in their tax prep pile, but theres a good chance they will next tax season. This new tax form will be a burden for people selling old items out of their garage or basement. Teenagers babysitting or mowing lawns, college students tutoring high schoolers, and roommates splitting rent are all eligible to be taxed, according to Democrats.

Before the law change, a taxpayer would have to earn $20,000 and at least 200 transactions through a business credit card or a business cash app on their phone to qualify for a 1099-K form. Congressional Democrats expanded this by eliminating the 200-swipe requirement entirely and lowering the $20,000 hurdle to just $600.

The 1099-K form only applies to business accounts, but this new law will confuse a lot of Americans who may not think of themselves as small businesses. Does getting rid of old exercise equipment collecting dust in the garage online now qualify you as a salesman of workout equipment? Is a teenager babysitting the neighbors kids now in the childcare business? Are roommates who split rent now property managers? Of course not, but the IRS will be treating them like they are.

The IRS continues to be overwhelmed keeping up with last years filing season, clearing out prior backlogs, and responding to correspondence. An influx of new 1099-K returns will further burden the agency, leading to continued delays on tax returns and other credits that people have been waiting on for years! This will worsen the economic pain hardworking families are feeling, as inflation spirals out of control and outrageous government spending sends us into a recession.

This targeting of small sources of income will result in bad outcomes for taxpayers and the IRS alike. It will fuel illegal and cash economy transactions, which often lead to more serious crimes.

Ive introduced H.R. 3425, the Saving Gig Economy Taxpayers Act, to restore the $20,000 and 200-transaction threshold for the 1099-K form levels that were working just fine before Democrats unnecessarily complicated the system and gave taxpayers new headaches. Congress should move fast to pass my legislation. Tax season will be here before we know it.

Carol D. Miller represents West Virginias 3rd District and serves on the House Ways and Means Committee.

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Fixing another liberal tax burden - The Hill