November 21, 2023

Manchin Statement on IRS Delay of Small Business Reporting Requirement

Charleston, WV – Today, U.S. Senator Joe Manchin (D-WV) released the following statement on the decision by the Internal Revenue Service (IRS) to delay the new $600 Form 1099-K reporting threshold requirement for third-party payment organizations for tax year 2023 and instead use a phased-in approach. The phased-in approach will allow the agency to review its operational processes to better address taxpayer and stakeholder concerns. Last December, Senator Manchin introduced an amendment to require the IRS to issue this delay, which they ultimately did.  

“Today’s decision to delay the implementation of the 1099-K tax reporting requirement is welcomed news for small business owners and individuals who sell goods online but it should not exempt Congress from enacting permanent relief. That is why I have joined a number of bipartisan legislative efforts to raise the impending $600 threshold and I will continue working with my colleagues in Congress on both sides of the aisle to ensure our taxation policies keep up with new online landscapes while protecting American taxpayers and small businesses,” said Senator Manchin.

Today’s decision follows feedback from taxpayers, tax professionals and payment processors. With this delay, for 2023 and prior years, payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions. For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements.

More information on today’s decision is available here.