The American Institute of CPAs (AICPA) released a statement following an announcement by the Internal Revenue Service (IRS) delaying the implementation of the $600 reporting threshold for third-party payment platforms’ Forms 1099-K.
The following statement is attributable to AICPA president and CEO Barry Melancon, CPA, CGMA:
“The AICPA has expressed deep concerns with the implementation of the new $600 reporting requirement, and we’re pleased that the IRS has heeded those concerns. Delaying the implementation of the $600 reporting threshold is the right move for taxpayers, tax practitioners and for the IRS.
“We appreciate Acting Commissioner O’Donnell’s willingness to listen to the many concerns surrounding the implementation of this policy and take the appropriate actions, and we believe this will both allow taxpayers to better understand and comply with the law and allow the IRS sufficient time to prepare for the implementation.
”While the AICPA is grateful to the Commissioner for this reprieve, we urge Congress to strongly consider previous recommendations to raise the threshold, possibly in accordance with the present day cost-of-living levels.”
The AICPA recently sent a letter to Congressional leadership of the Senate Finance Committee and the House Ways and Means Committee regarding the Form 1099-K, Payment Card and Third-Party Network Transactions, reporting threshold that was lowered to $600 for 2022 and will lead to significant confusion in the tax system in the coming months.
The AICPA recommended that the $600 section 6050W(e) de minimis exception for reporting be cost-of-living adjusted (COLA) using 1954 as the base period for the COLA. AICPA also supported a recommendation by the National Taxpayers Union Foundation to raise the threshold to $5,000.