The House Ways and Means Committee voted to advance a set of five tax-related bills, including one that would eliminate a twice-delayed requirement to report payments of at least $600 received through third-party networks like Venmo.
The tax-writing committee voted Wednesday to pass the Saving Gig Economy Taxpayers Act (H.R. 190) by a vote of 22 to 16. The bill repeals a provision of the American Rescue Plan Act of 2021 requiring the IRS to send 1099-K tax forms to Americans for using third-party cash transfer apps like Venmo and PayPal. The provision reduced the 1099-K reporting thresholds from $20,000 in earnings and 200 individual transactions to only $600 for the year from any single organization. However, the
Other legislation approved by the committee prohibits tax-exempt organizations from maintaining their tax-exempt status if they materially support terrorism and eliminates penalties on past-due taxes owed by Americans who have been held hostage or wrongfully detained. The committee also voted to remove taxes on devices like tasers and voted on bills to provide tax credits to help end the skilled labor shortage and expand educational scholarships for low-income families and students.
"Today, this committee is taking action to further help working families," said Ways and Means chairman Jason Smith, R-Missouri, in a statement. "By stopping an intrusive IRS, keeping our communities safe, and providing relief for Americans held hostage and their families, the legislation before us today will help Americans tackle serious challenges."
Rep. Richard Neal, D-Massachusetts, the top Democrat on the committee, was skeptical about the package. "There's also a bill that amends a very commonsense change we made in the American Rescue Plan," he said. "I think we can all agree that commerce looks very different today than it did in 2007. The gig economy has boomed, and our laws needed updating. We've consistently signaled that we are open to a serious discussion about modifying what we did in that law, but reverting to 2007 law will expand the tax gap even further. It's irresponsible to let that happen."
He also paid tribute to the late Rep. Bill Pascrell, D-New Jersey, a longtime member of the committee, who died last month. "This room certainly doesn't feel the same without the inimitable Bill Pascrell," said Neal. "He was one of a kind, with a spirit that they just don't make anymore. He will be remembered for his courageous fights and his ability to check politics on the dais. Billy could go after anyone and still share a laugh (and maybe a glass of wine) with them later in the day. He was the heart of us, and he is already so deeply missed."
