Cutting IRS red tape for Ohioans
By U.S. Sen. Sherrod Brown
After months of pressure, the IRS has agreed to again delay the implementation of new, burdensome rules that increase tax paperwork for Ohio’s smallest businesses and entrepreneurs.
Without this delay, online sellers and small businesses would be required to complete a 1099-K tax form for any transactions over $600 starting in January, creating more red tape for Ohioans.
Many online sellers are entrepreneurs trying to get their small business off the ground, which is difficult enough on its own. And in an economy where corporations still refuse to pay workers what they’re worth and hard work doesn’t pay off for too many Ohioans, it’s not a surprise that people use sites like E-Bay and Etsy to earn a little extra income. These Ohioans shouldn’t have to wade through excessive tax paperwork.
That’s why earlier this year I introduced the bipartisan Red Tape Reduction Act to permanently raise the threshold for when online sellers receive these tax forms from $600 to $10,000.
As we work to get this bill passed, we’ve been pressing the IRS to delay the implementation of the $600 reporting threshold.
I brought this up with the IRS Commissioner at a hearing and demanded they delay this as we work on a permanent fix. Last week, we got word that the IRS is bowing to pressure and keeping the higher threshold in place for another year. This is welcome news for small businesses across Ohio who were about to be hit by this excessive paperwork right after the holiday rush.
We need to provide these Ohioans certainty by passing my bipartisan bill to write the higher threshold into law, and permanently protect Ohioans from this excessive, and often unnecessary, paperwork.
It’s simple: Ohioans who rely on their online businesses don’t want the threshold lowered. If a rule is so unpopular and hard to enact that you have to keep delaying its implementation over and over, it’s probably a sign it shouldn’t be law in the first place.