With Tax Day looming just days away, two Republicans on the House Ways and Means Committee are warning that neither the IRS nor the American people are prepared to shoulder the burdens imposed by new reporting requirements.
Voicing their concerns in an April 4 letter (pdf) to Government Accountability Office (GAO) Comptroller General Gene Dodaro, Ways and Means Committee Chairman Jason Smith (R-Mo.) and Oversight Subcommittee Chairman David Schweikert (R-Ariz.) asserted that the amount of paperwork and tax preparation required to comply with new rules and regulations will be unmanageable for all involved.
“In Fiscal Year 2021, the Internal Revenue Service (IRS) received over 4.7 billion information returns—reports provided to the IRS to track business or trade payments and transactions—filed by third parties, most of which were filed electronically,” the lawmakers noted. “In addition, recent legislation drastically lowered the threshold to $600 for reporting certain types of payments, such as those made using a third-party platform like PayPal or Venmo. New regulations related to information reporting for transactions occurring across these digital assets could lead to the filing of billions more information returns.”…