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Ending Mandatory 1099-K Reporting for Payment Settlement Entities

This bill aims to eliminate the requirement for payment settlement entities (like online platforms or card processors) to file Form 1099-K, which reports transactions made by sellers and individuals to the IRS. This means citizens engaging in online sales or receiving payments through third-party networks will no longer be automatically reported to the IRS via this mechanism. The change reduces administrative burdens for businesses and potentially simplifies reporting for individuals, although they remain obligated to report all income themselves.
Key points
Repeals Section 6050W of the Internal Revenue Code, removing the requirement for payment settlement entities to file returns (Form 1099-K) related to certain payment card and third-party network transactions.
Citizens conducting business or sales through online platforms will no longer have these specific transactions automatically reported to the IRS.
The changes apply to tax returns for calendar years beginning after the date the act is enacted.
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Additional Information
Print number: 118_HR_6223
Sponsor: Rep. Perry, Scott [R-PA-10]
Process start date: 2023-11-03
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OFFICIAL LEGAL TITLE

1099K Elimination Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_6223.

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 2023-11-03.

What are the main provisions?

Key points include:

  • Repeals Section 6050W of the Internal Revenue Code, removing the requirement for payment settlement entities to file returns (Form 1099-K) related to certain payment card and third-party network transactions.
  • Citizens conducting business or sales through online platforms will no longer have these specific transactions automatically reported to the IRS.
  • The changes apply to tax returns for calendar years beginning after the date the act is enacted.
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. Perry, Scott [R-PA-10].

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 2025-12-30.

CATEGORIES

Taxes Economy