Atypical Allies Pushing 1099-K Changes: Gig Work Tax Explained

An unusual alliance of liberal and conservative lawmakers, the IRS, and a conservative advocacy group hope their alignment will boost efforts to tweak rules around 1099-K tax reporting.

At issue are tax forms that payment platforms like Venmo, eBay Inc., and DoorDash Inc. must send to freelancers and gig workers. The 2021 Covid relief bill drastically lowered the threshold for when these companies need to send taxpayers a form. The change from $20,000 to $600 in transactions was meant to simplify the tax code by aligning reporting requirements for online marketplaces with existing 1099 rules for businesses that use ...