Ryan Ellis, published in The Hill
The National Taxpayers Union Foundation recently updated a 1099-K study that projects 14 million to 40 million 1099-Ks will be issued. Again, this is a tax form most taxpayers have never seen. Commissioner Werfel has urged Congress to provide relief, as no one is prepared for tens of millions of confusing new tax forms — not the IRS, not the businesses forced to issue them, not tax professionals, and least of all taxpayers and customers.
For most taxpayers receiving a 1099-K, they won’t know what to do with it. Some will ignore it, triggering an instant nasty-gram or audit from the IRS. Some will pay taxes on the amount reported on the form, even if they have no tax liability at all from the activity.
The 87,000 new IRS agents approved by Congress last summer surely have better things to do with their time than harassing couples splitting vacation bills or moms selling used onesies.