Lets gig workers and small businesses avoid tax forms for smaller online sales.
This bill would raise the amount of money and number of transactions that payment apps must report to the IRS, reducing paperwork for many who sell goods or services online. It would also apply these higher limits to rules about backup tax withholding. This means fewer people would receive a tax form for lower amounts of online income.
Currently, payment apps must report online transactions to the IRS if a person earns more than $600 in a year, regardless of the number of transactions. This bill would change that, requiring reporting only if a person earns more than $20,000 AND has more than 200 transactions. These higher limits would also apply to when taxes might be automatically withheld from payments.
HR 1882 · 119th Congress · March 5, 2025 · AI Summary by gemini-2.5-flash · 9/10
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