The House of Representatives is currently discussing H.R.3717, the “Small Business Owners’ Tax Simplification Act of 2017.” The purported aim of the bill would be to avoid burdening small business owners and to improve compliance. The bill would seek to accomplish through changing the reporting thresholds of both Form 1099-MISC (something that hasn’t been done since 1954) as well as Form 1099-K.
In particular, this bill would raise the reporting threshold for Form 1099-MISC from $600 to $1500. Additionally, it would add an inflation adjustment aspect to the threshold, beginning in 2019 at the earliest.
The bill would also lower the reporting threshold amount of Form 1099-K to $1500 and eliminate the transaction threshold for the form. Currently, Form 1099-K has a $20k and 200 transaction threshold for all third-party network payments (although this threshold does not apply to payment card payments).
The bill is currently being discussed in the House Ways and Means committee and has obtained bipartisan support.
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