A change in the law means the I.R.S. will not be looking over your shoulder after all, for some piddling transactions on Venmo or PayPal.
“All small businesses in Texas and America can breathe a big sigh of relief,” exclaimed Glen Hamer, President of the Texas Association of Business.
A provision in President Trump’s Big Beautiful Bill dramatically raises the “1099-K” threshold for business transactions.
What’s that?
Under a Biden Administration era law, Americans would have been required to report to the I.R.S. any expenditures that added up to more than $600 for the year. That would apply to the expenses of small businesses but could also loop in transactions between friends, neighbors or relatives.
$600. For the entire year.
“600 bucks is an airline ticket!” Hamer exclaimed. “It’s half the price of a computer! It would have tripped up every small business, and many would have had absolutely no idea how to comply. That 600 threshold was hated.”
The threshold had been scheduled to take effect for next year. The Big Beautiful Bill scraps that threshold and replaces it with a threshold of $20,000, the kind of money businesses are used to filling out paperwork for.
Much to Hamer’s relief.
“The last thing you want is small businesses in Texas to be spending their time complying with a regulation that simply is unworkable,” he said.
Photo: Tristan Fewings