Washington D.C. (May 14, 2025) | Rep. Barry Loudermilk (GA-11) issued the following statement after he authored a letter to Ways and Means Committee Chair, Rep. Jason Smith, asking the committee to fix the American Rescue Plan Act (ARPA) IRS 1099-K threshold in the upcoming Tax Cuts and Jobs Act (TCJA) reauthorization.
“The American Rescue Plan Act was signed into law in March 2021. This was President Biden’s first reconciliation bill, including a pay-for that lowers the thresholds of reporting transactions on peer-to-peer payment platforms from $20,000 and 200 transactions to just $600 with no minimum transaction number. In practice, this lower threshold requires these platforms to report millions of untaxable transactions to the IRS, and the platforms have to provide a Form 1099-K to hundreds of thousands of people who do not need it. Additionally, this change would require people to keep detailed records of purchases or sales on items that need not be reported, which leads to over-reporting and overpaying, and in some cases could lead to an unwarranted audit. The ARPA change also threatens to delay processing for legitimate tax documents, leading to further delays and even greater backlogs at the agency.
“This provision is a gross example of federal overreach, and I am pleased that Chairman Smith has included this fix in the reconciliation bill. Returning to the pre-ARPA thresholds is a win for Americans and government efficiency.”
Here is a statement of support from the Coalition for 1099-K Fairness:
“The Coalition for 1099-K Fairness thanks Rep. Barry Loudermilk and the more than 20 members of Congress who sent a letter to Rep. Jason Smith, Chairman of the House Ways and Means Committee, encouraging him to return the 1099-K reporting threshold to $20,000. As the letter notes, the current, lower reporting requirement, creates unnecessary confusion for American taxpayers and could result in overpayment and unnecessary IRS scrutiny.
At a time of economic uncertainty, small business owners and consumers need policies that simplify their operations, not needless burdens.
We are grateful that Chairman Smith included this language in the Ways and Means Committee bill – which passed in Committee this week — to permanently increase the 1099-K reporting threshold and look forward to seeing this important change enacted into law later this year.”
Click here to read the full letter