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The Right Coast
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The IRS Grants a Harassment Reprieve – WSJ

By Thomas A. Smith

The Internal Revenue Service isn t usually a bearer of good news, but on Friday it brought holiday cheer by granting a one-year reprieve from a burdensome reporting mandate that could have ensnared any American who made extra cash selling used goods on eBay. It would have been better if Congress had repealed the mandate.

Third-party payment processors such as eBay, Amazon and PayPal previously had to send 1099-Ks only to taxpayers with at least 200 transactions and $20,000 of revenue. Democrats lowered the threshold to $600 in their March 2021 American Rescue Plan Act to catch Americans they claim are cheating on their taxes.

With one hand Democrats doled out bountiful transfer payments, and with the other they pursued unsuspecting taxpayers. The low $600 mandate was intended to target Americans who use the platforms on occasion to, say, rent out their homes or sell homemade wares. But it also could ensnare countless Americans who use peer-to-peer payment services to reimburse friends for a night out or send a birthday gift in lieu of cash.

via www.wsj.com