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Higher Tax Reporting Threshold for Small Online Sellers and Gig Workers.

This law raises the thresholds at which payment platforms (like those used for online sales or gig work) must report your income to the tax authorities. The change means that if you sell goods or services online and do not exceed $10,000 or 50 transactions annually, you will not receive a 1099-K tax form. The goal is to reduce administrative burden and simplify tax filing for small businesses and individuals earning supplementary income online.
Key points
The annual payment limit that third-party payment processors must report to the IRS is raised to $10,000.
Reporting is only required if a seller exceeds $10,000 OR completes more than 50 transactions during the year.
These changes apply to transactions settled after December 31, 2023, simplifying tax compliance for many small sellers.
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Expired
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Additional Information
Print number: 118_S_1725
Sponsor: Sen. Brown, Sherrod [D-OH]
Process start date: 2023-05-18
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Red Tape Reduction Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1725.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-05-18.

What are the main provisions?

Key points include:

  • The annual payment limit that third-party payment processors must report to the IRS is raised to $10,000.
  • Reporting is only required if a seller exceeds $10,000 OR completes more than 50 transactions during the year.
  • These changes apply to transactions settled after December 31, 2023, simplifying tax compliance for many small sellers.
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 Sen. Brown, Sherrod [D-OH].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Economy