The Internal Revenue Service on Friday said that it is delaying by one year a new tax reporting requirement targeting Americans who made more than $600 online through third-party payment apps like Venmo or PayPal.
“The IRS and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan,” said Doug O’Donnell, the acting IRS commissioner. “To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes.”
The delay comes after backlash from bipartisan lawmakers, small business owners and tax professionals to the policy, which was enacted in 2021 by Democrats as part of the American Rescue Plan and supposed to take effect this year.
This is a developing story. Please check back for updates.