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Higher Online Sales Threshold: Less Tax Paperwork

This bill raises the reporting threshold for online sales from $600 to $5,000, meaning fewer individuals will receive a 1099-K tax form for small transactions. Additionally, it mandates clear tax instructions for those who still receive the form, making it easier to understand their obligations.
Key points
Increased online sales reporting threshold to $5,000 annually, reducing the number of individuals receiving Form 1099-K.
Requirement for online platforms to provide clear, easy-to-understand information about what Form 1099-K means and when income is taxable.
New backup withholding rules will only apply to transactions totaling $5,000 or more.
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Expired
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Additional Information
Print number: 117_HR_7079
Sponsor: Rep. Pappas, Chris [D-NH-1]
Process start date: 2022-03-15
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Cut Red Tape For Online Sales Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_7079.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2022-03-15.

What are the main provisions?

Key points include:

  • Increased online sales reporting threshold to $5,000 annually, reducing the number of individuals receiving Form 1099-K.
  • Requirement for online platforms to provide clear, easy-to-understand information about what Form 1099-K means and when income is taxable.
  • New backup withholding rules will only apply to transactions totaling $5,000 or more.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Pappas, Chris [D-NH-1].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Taxes Economy