Ya'll if you use Ebay to sell anything, then check your notifications on your account and follow the instructions to send out this email to your representative.
Mine went to Neal Dunn, Marco Rubio and Rick Scott. This is ridiculous that we will be forced to file a 1099 and have to pay more taxes on already taxes items. That is double taxing, excessive and unacceptable!!Fix Burdensome Tax Reporting Requirements Before January 1!
Millions of Americans will receive confusing and burdensome tax forms in January 2023 for the sale of used or pre-owned goods, even when the sale of those goods are non-taxable events, unless Congress provides critical relief before the end of this year. With inflation continuing, consumer prices rising and millions of Americans struggling to get by, Congress must fix this issue in an end-of-the-year bipartisan tax package. Millions of Americans use marketplace platforms to supplement income, make ends meet, and support their families. Section 9674 of the 2021 American Rescue Plan (H.R. 1319), which was inserted without any hearing or debate, reduced the de minimis reporting threshold for Third-Party Settlement Organizations (TPSOs) from $20,000 in annual payments and 200 transactions, to $600 (with no transaction count).
The impact of this change will be that millions of Americans cleaning out their garage or selling a few used items to make extra money will now receive a 1099-K tax form. Dropping the de minimis threshold to $600 for issuing a 1099-K will cause confusion and over-reporting of non-taxable income for millions of Americans already struggling as a result of the pandemic. Additionally, this change threatens to limit the availability of lower-cost used goods for essential items American families need. When you sell a good below the cost you originally paid, there is no profit and therefore no income tax owed. If you’re one of the millions of Americans who use marketplaces as the virtual equivalent of a yard sale, you’ll now have to make sure you have receipts for virtually everything lying around your house. From prom dresses to old electronics to used sports equipment - if you sell even a single item for more than $600 dollars online, you’ll now get a tax form, and need to be able to prove to the IRS that you did not make a profit.
Americans shouldn’t be forced to choose between making money on used goods and facing the IRS. We’ve seen how difficult it is for the IRS to process Americans’ returns on time. Adding tens of millions of forms for non-taxable income is unnecessary waste, and a burden neither the IRS nor taxpayers can afford right now. Fortunately, there are multiple pieces of legislation introduced by both Democrats and Republicans that will raise the reporting threshold and protect Americans selling online (S.3840/H.R.7079, S.3546/H.R.6913, S.948/H.R.3425). I ask you to cosponsor this legislation and raise the threshold before January 1, 2023.We need a threshold for consumer sales of goods that makes sense and protects millions of Americans from over-taxation and unnecessary disclosure of private information. Please protect consumers and increase the 1099-K reporting threshold.