From the NYT today:
The Internal Revenue Service said on Friday that it is delaying by one year a new tax policy that will require users of digital wallets and e-commerce platforms to start reporting small transactions to the tax collection agency.
The delay of the rule comes in the wake of bipartisan backlash from lawmakers and an uproar from small business owners, who only recently became aware of the tax change.
The I.R.S. said that the delay is intended to provide a smooth transition period for taxpayers to comply with the policy, which was enacted as part of the American Rescue Plan of 2021 and which was supposed to take effect this year. Many users of services such as Venmo, PayPal, Cash App, StubHub and Etsy only recently became aware that they would be receiving I.R.S. tax forms associated with their transactions, sowing fears of surprise tax bills.
“The I.R.S. and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan,” Douglas O’Donnell, the acting I.R.S. commissioner, said in a statement. “To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the I.R.S. will delay implementation of the 1099-K changes.”
The Internal Revenue Service said on Friday that it is delaying by one year a new tax policy that will require users of digital wallets and e-commerce platforms to start reporting small transactions to the tax collection agency.
The delay of the rule comes in the wake of bipartisan backlash from lawmakers and an uproar from small business owners, who only recently became aware of the tax change.
The I.R.S. said that the delay is intended to provide a smooth transition period for taxpayers to comply with the policy, which was enacted as part of the American Rescue Plan of 2021 and which was supposed to take effect this year. Many users of services such as Venmo, PayPal, Cash App, StubHub and Etsy only recently became aware that they would be receiving I.R.S. tax forms associated with their transactions, sowing fears of surprise tax bills.
“The I.R.S. and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan,” Douglas O’Donnell, the acting I.R.S. commissioner, said in a statement. “To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the I.R.S. will delay implementation of the 1099-K changes.”