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Online Sales Relief: Higher Reporting Threshold and Clear Tax Guidance

New rules raise the online sales reporting threshold from $600 to $5,000, meaning fewer individuals will receive Form 1099-K. Additionally, the form will include clearer explanations about taxability, helping citizens understand their tax obligations and rights.
Key points
Increased online sales reporting threshold to $5,000 annually, reducing the number of individuals receiving Form 1099-K.
Introduction of plain language explanations on Form 1099-K, clarifying when income is taxable and when it is not (e.g., personal items sold at a loss).
A reminder about potential small business tax deductions.
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Expired
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Additional Information
Print number: 118_HR_3530
Sponsor: Rep. Pappas, Chris [D-NH-1]
Process start date: 2023-05-18
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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 118_HR_3530.

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 2023-05-18.

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.
  • Introduction of plain language explanations on Form 1099-K, clarifying when income is taxable and when it is not (e.g., personal items sold at a loss).
  • A reminder about potential small business tax deductions.
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 2025-12-25.

CATEGORIES

Taxes Economy