Brown Pushing Bipartisan Legislation to Permanently Protect Entrepreneurs from Excessive Tax Paperwork
WASHINGTON, D.C. – Today, U.S. Senator Sherrod Brown (D-OH) hosted a news conference call to discuss his efforts to protect Ohio entrepreneurs and small businesses who sell goods online from excessive tax paperwork requirements. Following Brown’s urging, the IRS announced last week that it will once again delay the implementation of the $600 threshold for individuals and entrepreneurs who receive 1099-K tax forms for another year and that it is moving the threshold to $5,000 for this tax year. Brown has introduced bipartisan legislation to permanently move the threshold to $10,000.
“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 try to find ways to earn a little extra income. Small-time entrepreneurs on sites like E-Bay and Etsy shouldn’t have to wade through excessive tax paperwork requirements,” said Brown. “For some, it’s their small business and their livelihood. For others, they’re trying to make a little extra money selling collectibles or crafts or other items online.”
“Senator Brown’s leadership on 1099-K will prevent millions of unnecessary and confusing tax forms from going to Ohioans who are just trying to make a few dollars selling things around their house online,” said Michael Swoape, Chief Operating Officer of One4Silver, a small tabletop retailer based in Akron that relies on online sales. “I am grateful for his efforts, as are the many Ohioans in my online selling network. On behalf of our community, thank you Senator Brown.”
Brown, a senior member of the Senate Finance Committee, has been working to find solutions to relieve this burden on small businesses. Earlier this year, Brown, alongside U.S. Senator Bill Cassidy (R-LA), led the introduction of the Red Tape Reduction Act, legislation that will raise the threshold to $10,000 from $600, ensuring that fewer small businesses and entrepreneurs receive excessive paperwork for online sales.
In April, during a Senate Finance Committee hearing, Brown pressed IRS Commissioner Daniel Werfel about the need for a higher threshold to help relieve burdens on small businesses and IRS.