Republicans are warning Americans the Internal Revenue Service could be coming after them if they fail to report transactions of more than $600 on third-party payment networks such as PayPal and Venmo.
As part of the American Rescue Plan passed by Congress last year, the IRS said the threshold for reporting transactions for goods and services to the agency on third-party payment networks went from $20,000 and 200 transactions to $600 and just one transaction.
"If you sold a couch, resold tickets at the price you paid, or just did some extra work on the side, you could trigger greater scrutiny from the Internal Revenue Service," Republicans on the House Ways and Means Committee said in a statement. "These are hardly the activities of the wealthy elite that Democrats claim they want to go after. Worse, this comes after Democrats supercharged the [IRS] with plans for an army of 87,000 new agents to go after Main Street workers and working families."
The Republicans on the committee said the Biden administration is going back on its promise that no one making less than $400,000 will see their taxes go up.
"It is going to be a bureaucratic nightmare," Rep. Kevin Brady, R-Texas, the committee's ranking Republican, told Fox News on Tuesday. "This is part of the whole Democrat approach — going after small and independent businesses, the gig economy especially, and agriculture."
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