On February 26, 2021, Gusto joined a letter to Congress opposing changes to 1099K reporting requirements as part of the American Rescue Plan.
The coalition urged Congress to reject the proposed inclusion of section 9674 in the manager’s amendment to the American Rescue Plan. This proposal would amend section 6050W of the IRS code to require reporting for any transaction above $600 in gross sales through a 1099-K form. Current statute requires small business owners to file a 1099-K only when there’s a transaction greater than $20,000 and a minimum of 200 transactions completed over the course of one year. This proposed change would place a burden on small business owners and entrepreneurs and further complicate an already challenging tax season for small business and entrepreneurs.
Read the full letter here: