eBay CEO Jamie Iannone said in a post on Wednesday that the IRS’s decision to delay the new, lower $600 tax-reporting threshold for a year was “welcome news,” saying it would translate into reduced tax overreporting and fewer unnecessary tax forms.
Iannone said that he, along with eBay’s Government Relations team, had lobbied members of Congress in 2022 on the issue of 1099K reporting requirements. eBay, like other companies that process payments on behalf of sellers, is required to issue Form 1099-K to the Internal Revenue Service for every seller who meet the reporting threshold.
The CEO referred to his op-ed in Fortune published prior to the IRS’s December announcement where he had said that lowering the 1099-K reporting threshold from $20,000 in annual payments (and 200 transactions) to just $600 did the opposite of the legislation’s intended goals, writing that it would cause confusion, increased cost, and tax overreporting “for those Americans who need the extra income the most.”
In his LinkedIn post on Wednesday, Iannone thanked eBay sellers who had the company’s efforts by writing to their local representatives about their personal experiences and calling for change. “We’ll continue to do as much as we can to financially empower the world’s largest community of enthusiasts,” he said.
Note, that the IRS only delayed implementation of the lower $600 threshold – it is in place for 2023 unless Congress acts.
The government may very well loose tax revenue by having these 1099k. Most people never took a home office expense or a vehicle expense milage expenses etc. But when you show up to the accountant with an 800.00 1099k the accountant and client will brainstorm for expenses and it won’t be too hard to come up with 800.00 in expenses! For starters if you sold a couch for 800 but it costed you 600.00 you are down to 200.00 take a home office expense and before you know it you will be owed a refund for the loss! There is a reason why the threshold was at 20,000 – anything less is fairly easy to cancel out with expenses between cost of goods, shipping, office etc. It’s a silly money grab that is only going to be one from the poor who have no accountant to guide them. What’s funny is someone that had an income under 20k is probably not too rich aren’t those the people we are always trying to help with tax cuts? The only people gaining from this legislation are accountants who will now charge a slew of fees to their clients for filing a business schedule c!