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History

A journey through the evolution of Form 1099 and its significance in reporting income.

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September 8, 1916

Revenue Act of 1916 Enacted

The Revenue Act of 1916 introduced the requirement for information reporting, laying the groundwork for Form 1099.

Reporting Threshold: $600
CPI at this time: 10.0
October 3, 1917

War Revenue Act of 1917

Form 1099 was introduced to report various types of income, including interest and dividends.

Reporting Threshold: $600
CPI at this time: 11.6
June 9, 1943

Current Tax Payment Act of 1943

This Act established tax withholding on employee wages, setting a precedent for tracking various income sources.

Reporting Threshold: $600
CPI at this time: 17.3
August 16, 1954

Internal Revenue Code of 1954

A comprehensive overhaul that expanded information reporting requirements, further defining the use of Form 1099.

Reporting Threshold: $600
CPI at this time: 26.9
July 1, 1982

Tax Equity and Fiscal Responsibility Act of 1982

Expanded Form 1099 reporting to include payments to independent contractors and other non-wage compensations.

Reporting Threshold: $600
CPI at this time: 96.5
October 22, 1986

Tax Reform Act of 1986

Broadened Form 1099 reporting, particularly for freelancers and independent contractors, increasing the use of Form 1099-MISC.

Reporting Threshold: $600
CPI at this time: 109.6
Early 1990s

IRS Promotes Electronic Filing

The IRS introduced electronic filing, initially for large organizations, impacting how 1099 forms were filed.

Reporting Threshold: $600
CPI at this time: 130.7
June 7, 2001

Economic Growth and Tax Relief Reconciliation Act

Introduced changes affecting income reporting but did not directly change Form 1099 requirements.

Reporting Threshold: $600
CPI at this time: 177.1
2008

E-File Mandate for Large Filers

The IRS mandated electronic filing for companies submitting 250+ information returns, including Form 1099.

Reporting Threshold: $600
CPI at this time: 215.3
March 18, 2010

Patient Protection and Affordable Care Act

Expanded Form 1099 requirements to include payments for goods and services, later repealed.

Reporting Threshold: $600
CPI at this time: 218.1
April 14, 2011

Comprehensive 1099 Taxpayer Protection Act of 2011

Repealed the expanded 1099 requirements for goods and services payments introduced by the Affordable Care Act.

Reporting Threshold: $600
CPI at this time: 224.9
December 22, 2017

Tax Cuts and Jobs Act

Though it didn't directly affect Form 1099, the Act influenced gig economy workers by introducing the qualified business income deduction.

Reporting Threshold: $600
CPI at this time: 245.1
December 20, 2019

Further Consolidated Appropriations Act, 2020

Reintroduced Form 1099-NEC to report non-employee compensation, effective for the 2020 tax year.

Reporting Threshold: $600
CPI at this time: 256.6
March 11, 2021

American Rescue Plan Act of 2021

Lowered the Form 1099-K reporting threshold to $600 for third-party payment networks, effective for the 2022 tax year.

Reporting Threshold: $600
CPI at this time: 264.9
March 2021

IRS Destroys 30 Million Paper-Filed Information Returns

Due to processing backlogs amid the COVID-19 pandemic, the IRS destroyed approximately 30 million paper-filed information returns to manage the backlog.

Reporting Threshold: $600
CPI at this time: 264.9
December 23, 2022

IRS Delays Implementation of New 1099-K Threshold

The IRS announced a delay in implementing the new $600 Form 1099-K reporting threshold, treating 2022 as a transition year.

Reporting Threshold: $600
CPI at this time: 292.7
February 9, 2023

Further Delay in 1099-K Reporting Threshold

The IRS announced an additional delay for the new $600 Form 1099-K threshold, planning a $5,000 threshold for 2024.

Reporting Threshold: $5,000
CPI at this time: 296.8
June 13, 2024

House Ways and Means Committee Advances Form 1099-K Bill

Advanced legislation (H.R. 190) to restore the $20,000 and 200 transaction threshold for 1099-K reporting via third-party payment companies.

Reporting Threshold: $20,000
CPI at this time: Estimated 300
November 21, 2024

IRS Announces 2024 Tax Year 1099-K Threshold

The IRS confirmed that for tax year 2024, the Form 1099-K reporting threshold remains at $5,000 for third-party payment networks, continuing the phased approach.

Reporting Threshold: $5,000
CPI at this time: 305.0
January 2025

IRS Implements New 1099-K Reporting Requirements

The $5,000 threshold for Form 1099-K reporting takes effect for the 2024 tax year, requiring payment processors to issue forms to taxpayers who received $5,000 or more in payments.

Reporting Threshold: $5,000
CPI at this time: 307.0
March 2025

IRS Extends 1099-K Transition Period

The IRS announces an additional transition year for 2025, maintaining the $5,000 threshold while continuing to evaluate the impact on taxpayers and payment processors.

Reporting Threshold: $5,000
CPI at this time: 308.5
July 4, 2025

One Big Beautiful Bill Act Signed Into Law

The One Big Beautiful Bill Act (OBBBA) brings major changes to Form 1099 reporting. Form 1099-K threshold is restored to $20,000 and 200 transactions (retroactive to 2022), while Form 1099-MISC and 1099-NEC thresholds increase from $600 to $2,000 starting in 2026. This legislation significantly reduces paperwork burdens for gig workers and small businesses.

Reporting Threshold: $20,000 (1099-K), $2,000 (1099-MISC/NEC)
CPI at this time: 310.5