> Before 2022, the federal Form 1099-K reporting threshold was for taxpayers with more than 200 transactions worth an aggregate above $20,000. However, Congress

> Before 2022, the federal Form 1099-K reporting threshold was for taxpayers with more than 200 transactions worth an aggregate above $20,000. However, Congress slashed the limit as part of the American Rescue Plan Act of 2021, and a single transaction over $600 may now trigger the form. > Aimed at closing the tax gap — a top priority of the Biden administration — the provision is estimated to bring in $8.4 billion from fiscal year 2021 to 2031, according to the Joint Committee on Taxation. Here is the JCT document: https://www.jct.gov/publications/2021/jcx-14-21/ https://www.jct.gov/publications/2021/jcx-14-21/ It shows that this $8.5B tax revenue increase is for the 10-year period of 2021-2031, ie, $850M per year. It's at VIII 4. Modification of exceptions for reporting of third party network transactions. So for a mere $850M/year in new tax revenue, the government is going to require millions (my guess) of people to have to deal with a new tax form. And these 1099's are likely to be very inaccurate. People use eBay all the time to sell personal shit they no longer want, and now they will be getting a 1099 for those sales. Selling $600 of crap around the house is not taxable income: you sure as hell didn't get to take a tax deduction when you bought the junk! This won't at all address cash-based payments, like for handymen. But I think it's being put in place now, so that when they eventually shove digital currency down our throat, all those cash payments will be tracked and taxed. You may not pay a handyman $20K/year, but might easily pay him more than $600. Who's closing the tax gap for the ultra rich? They don't seem to be as hard at work on that.