Congress Discussing Bill That Alters Thresholds for Forms 1099-MISC and 1099-K

October 11, 2017 Adam Rivera

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.

About the Author

Adam Rivera is a member of the Regulatory Analysis Team's Direct Tax division at Sovos. His main areas of focus are Federal and State Tax Withholding and Affordable Care Act (ACA) Reporting. Prior to Sovos, Adam worked as a legislative aide in the Florida House of Representatives. He also has experience in securities law, focusing on securities litigation and researching emerging crowdfunding methods of raising capital. Adam is a member of both the Massachusetts and Florida Bars. He earned his B.A. from the University of Florida and his J.D. from the University of Miami.

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