{"id":2157314,"date":"2024-01-23T17:59:02","date_gmt":"2024-01-23T22:59:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cassidy-pushes-for-fix-to-600-irs-venmo-reporting-rule-in-child-tax-credit-deal\/"},"modified":"2024-01-23T18:07:27","modified_gmt":"2024-01-23T23:07:27","slug":"cassidy-pushes-for-fix-to-600-irs-venmo-reporting-rule-in-child-tax-credit-deal","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cassidy-pushes-for-fix-to-600-irs-venmo-reporting-rule-in-child-tax-credit-deal\/","title":{"rendered":"Cassidy urges amendment to child tax credit deal, targeting $600 IRS Venmo reporting rule"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcassidy-pushes-for-fix-to-600-irs-venmo-reporting-rule-in-child-tax-credit-deal%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2157314&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Sen. Bill\u2062 Cassidy Advocates for Changes to IRS Reporting Requirement in Tax Bill<\/h2>\n<p>Sen. \u200bBill Cassidy (R-LA) \u2063is pushing for modifications to a controversial \u2064$600 IRS reporting \u200crequirement\u200d to be included \u200din the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/burgum-backs-bigger-child-tax-credit-amid-broader-gop-family-push\/\" title=\"Burgum supports increased child tax credit in GOP's family-focused agenda.\">child \u2064tax credit<\/a>\u200b and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-panel-votes-overwhelmingly-to-advance-child-tax-credit-and-business-tax-bill\/\" title=\"House panel approves child tax credit and business tax bill\">business tax bill<\/a>. The legislation \u2064has already passed the Ways and Means Committee with a bipartisan vote of 40-3 and will now move to the \u200dbroader House. However, its fate in the Senate remains uncertain as the Finance Committee will review\u200c the bill.<\/p>\n<p>This bipartisan tax legislation presents\u2062 an opportunity for \u2063additional changes, and lawmakers in\u2063 both\u200d the\u200b House and\u200d Senate are hopeful that it will address a 2021 law implemented\u2062 during the Biden\u200d administration. This \u200blaw mandates payment platforms like Venmo and Paypal to send 1099-K tax forms to individuals receiving over \u2062$600\u200b per year.<\/p>\n<p>Sen. Cassidy, who previously introduced separate \u200clegislation to \u2063raise the reporting threshold \u2064to $10,000, is\u2063 now urging the committee to include his proposed fix in the tax bill. He believes that\u2064 the current \u2063cap imposed by the Biden administration is negatively \u2064impacting small \u200bbusiness\u200c owners and individuals struggling to meet their financial obligations.<\/p>\n<p>It is \u200bworth noting that the IRS has delayed \u200dthe implementation of\u200d this\u2063 reporting requirement for two consecutive years.\u2062 In November, \u200dthey announced that 2023 \u2063would be another &#8220;transition year&#8221; to minimize confusion\u200d caused by\u2063 the distribution of an estimated 44 million 1099-K forms to taxpayers.<\/p>\n<h3>Efforts to Change \u2062the \u2063Reporting Requirement<\/h3>\n<p>Efforts to \u200dmodify the $600 reporting requirement have gained traction\u2062 in\u200d the House. A \u200dgroup of bipartisan lawmakers, including Reps.\u200c Chris Pappas (D-NH), Ann Wagner (R-MO), and Tim Burchett (R-TN), sent a letter to House and Ways and Means \u200cCommittee leadership requesting\u2062 a fix be included in the legislation. They emphasized the need for a long-term legislative\u2063 solution to provide\u200b certainty for online \u2063sellers and prevent millions of Americans from receiving confusing tax forms for \u2064online transactions once the current \u200bpause expires.<\/p>\n<p>The tax \u200cplan under consideration is the \u2063result of negotiations\u2064 between Ways and Means Committee Chairman Jason Smith (R-MO) and Senate Finance\u200c Committee Chairman \u2063Ron Wyden (D-OR). The plan aims to expand\u200c the child tax\u2063 credit \u2063by increasing the maximum \u2063refundable amount \u200cper child and making the credit more generous on a per-child basis. \u2063It \u2064also \u2062includes renewals\u200d of key \u2063tax deductions for businesses, such as research and \u2064development costs.<\/p>\n<p>Despite receiving endorsement from the \u2062White House and passing the Ways and Means Committee, the bill&#8217;s passage, especially in an election year, remains uncertain. Sen. Thom Tillis (R-NC) recently expressed opposition to the Wyden-Smith bill in its current form,\u2063 citing concerns about its funding.<\/p>\n<h3>Paying \u2064for the Legislation<\/h3>\n<p>The legislation proposes funding changes through adjustments to\u200b the\u2062 pandemic-era\u2064 employee retention tax\u200c credit (ERC), which incentivized business owners \u200cto \u2062retain employees. It would move the filing \u2063deadline for backdated ERC claims to January 31 and increase penalties \u2062for \u2062promoters involved\u2062 in aiding \u2062and abetting the understatement of business owners&#8217; tax liability.<\/p>\n<p>The Joint Committee on Taxation \u2063estimates that these ERC changes would \u200bresult in approximately $77 billion in savings, \u200cmaking\u200b the overall bill deficit-neutral. However, if the provisions \u200bwere made permanent, it\u200c would cost $645 billion through 2033, according to the Committee for a Responsible Federal Budget.<\/p>\n<p>Despite the\u2063 potential benefits \u2062of the bill, deficit-minded\u200b Republicans are cautious \u200cabout making the\u200d tax cuts permanent. The bill currently includes \u200da sunset provision in 2025.<\/p>\n<p>Read more\u2062 from the\u200b Washington \u200bExaminer <a href=\"https:\/\/www.washingtonexaminer.com\/news\/sen-bill-cassidy-advocates-for-changes-to-irs-reporting-requirement-in-tax-bill\">here<\/a>.<\/p>\n<p> <\/p>\n<h2> In what ways do\u2062 payment platforms like Venmo and Paypal believe that the reporting requirement places unnecessary administrative burdens on\u2063 their users?<\/h2>\n<p><span>  Rom being burdened with unnecessary \u200creporting requirements.<\/p>\n<p>In the Senate, Sen. Cassidy&#8217;s proposal to raise the \u2063reporting threshold to $10,000 has gained support from several\u2063 colleagues across the aisle. Sen. Ron Wyden (D-OR) and Sen. Steve Daines (R-MT) \u200bhave both expressed their willingness to work with Sen. Cassidy in finding a bipartisan \u2064solution to address the concerns raised by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-appeals-to-small-business-in-expanded-bidenomics-pitch\/\" title=\"Biden targets small businesses in expanded Bidenomics pitch.\">small business \u200downers<\/a> and individuals.<\/p>\n<p>The push for\u200c changes \u2064to the reporting requirement stems from \u2062the \u200bbelief that the current threshold of $600 places an undue \u2063burden on small businesses and \u2062individuals who engage in\u200c occasional \u200cor low-value \u2064transactions. \u2063These individuals may not have the resources or infrastructure to \u2063comply with the reporting requirements, leading to additional paperwork and potential financial strain.<\/p>\n<p>Furthermore, critics\u200b argue that the reporting requirement creates a \u2062disproportionate burden on individuals\u200d who rely on \u2062payment platforms like Venmo and Paypal for peer-to-peer \u2063transactions. These platforms were initially designed for personal use, and the reporting requirement places an unnecessary administrative burden on individuals who are not engaged in extensive business \u200bactivities.<\/p>\n<p>Proponents of raising the \u200creporting threshold argue\u2063 that \u2063a higher threshold would \u200cbetter target the reporting requirements on businesses \u2062and individuals who engage in significant transactions \u200band\u200c have the capacity to comply with the reporting obligations. This \u200cwould relieve the burden on small \u200bbusinesses \u200dand \u200clow-value transaction participants, allowing \u200dthem to focus on their operations and financial \u2062stability.<\/p>\n<p>As\u200c discussions\u200d continue in both the House and Senate, it remains to be seen whether Sen. Cassidy&#8217;s proposed modifications to the reporting requirement\u200d will be incorporated into the final version of the tax bill. Lawmakers on both sides of the aisle are committed to finding a fair and balanced \u200csolution that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-plans-taxpayer-backed-green-giveaway-climate-change-operation-in-morocco\/\" title=\"Biden's taxpayer-funded 'green giveaway' to combat climate change in Morocco.\">promotes economic growth<\/a>\u2062 while ensuring a reasonable level of compliance with \u2062tax reporting obligations.<\/p>\n<p>Ultimately, the fate of the modified reporting requirement lies in \u2063the hands of lawmakers as \u200dthey weigh \u2064the potential impact on small businesses, individuals, \u200band the overall economy. As the tax bill progresses through the legislative process, it is crucial for stakeholders to engage\u200c in productive dialogue to ensure that the \u2063final legislation establishes a reporting \u2062threshold that\u200b strikes the right balance between compliance and alleviating burdens on taxpayers.<\/p>\n<p>By advocating for changes\u200d to the IRS reporting requirement,\u2063 Sen. \u200cCassidy and his colleagues are seeking to promote fairness\u200c and \u200dalleviate unnecessary burdens \u2062on \u2063individuals and businesses, ultimately fostering an environment that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/poll-bidens-job-approval-hits-new-low-at-32\/\" title=\"Poll: Biden\u2019s job approval hits new low at 32%\">supports economic growth<\/a> and prosperity \u200bfor all.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sen. Bill Cassidy (R-LA) is pushing for amendments to the $600 IRS reporting rule to be added to the child tax credit and business tax bill. The bill has successfully passed the Ways and Means Committee with a bipartisan vote of 40-3, moving it forward to the broader House<\/p>\n","protected":false},"author":2683,"featured_media":2315279,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2157314","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2157314","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2683"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2157314"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2157314\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2157314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2157314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2157314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}