Dems Offer Bill to Raise Online Seller Income Reporting Bar (1)

A pair of House Democrats on Tuesday introduced legislation to raise the threshold for when third-party settlement organizations have to issue 1099-K tax forms to taxpayers.

Reps. Cindy Axne (D-Iowa) and Chris Pappas (D-N.H.) say their bill is designed to help reduce confusion for people who sell used goods online for less than the original purchase price.

“We’re just hoping to cause less confusion and cut some red tape for small sellers who sell their products online and others that would fall under this new 1099 threshold,” Pappas said in an interview with Bloomberg Tax.

A provision in the Covid-19 ...