Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Taxes The Internal Revenue Service (IRS) delays new tax rule for e-commerce websites to help alleviate any confusion with the transition

The Internal Revenue Service (IRS) delays new tax rule for e-commerce websites to help alleviate any confusion with the transition (Photo by Justin Sullivan/Getty Images)

By Savannah Young Leaders Staff

Savannah Young

News Writer

Savannah Young is a news writer for Leaders Media. Previously, she was a digital reporter for WATE Channel 6 (ABC)...

Full bio


Learn about our editorial policy

Updated Aug 11, 2023

IRS Delays E-Commerce Taxes

The Internal Revenue Service (IRS) delays new tax rule for e-commerce platforms to help alleviate any confusion with the transition.

Key Details

  • The IRS has decided to delay a new tax rule for e-commerce platforms such as Venmo, CashApp, and Etsy to tax customers who use the platforms for business and have transactions of more than $600.
  • Originally customers had a threshold of $20,000 before being taxed, but Congress changed it to $600 in 2021.
  • The IRS is giving customers a year to fully understand the change and avoid confusion when the rule goes into effect for next year’s tax season.

Why it’s news

E-Commerce businesses have grown tremendously in recent years, specifically during the pandemic, as many people began trying to generate income from home by selling handmade items online.

Etsy, an e-commerce marketplace, had 7.5 million active sellers on its platform in 2021, a 74% increase from the previous year.

Considering the number of e-commerce businesses popping up, the IRS has changed how internet businesses are taxed. Originally e-commerce users had a threshold of $20,000 in transactions before being taxed, but Congress changed it to $600 in 2021.

Any business with transactions over $600 will be taxed, but the IRS is giving companies a year to get everything in place and avoid confusion before fully instating the tax.

“The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements,” says Acting IRS Commissioner Douglas O’Donnell.

The IRS says this new tax isn’t to be used for personal transactions on Venmo, Paypal, or other money transfer services. Customers can still pay for concert tickets, dinner, groceries, etc., without worrying about reaching that $600 threshold it is just meant for business transactions.

The Other Side

While many lawmakers were for the new tax law stating that many online businesses were making too much money without being taxed, others were against the law stating that it will hurt small businesses in the U.S.

Many lawmakers urged the IRS to delay the bill to figure out all the small details and ensure it would not hurt small businesses forcing them to close.

Ultimately the bill was postponed for a year to allow businesses to get everything in order, and the IRS said more news will be coming soon.

“I am pleased the Treasury Department, and the IRS listened to my request to delay the 1099-K reporting requirement that will harm small businesses and individuals who sell goods online across America,” says Senator Joe Manchin, a West Virginia Democrat who pressed for a delay in the tax law. “This will allow Congress more time to correct this regulation that puts undue burden on our small businesses.”

Get answers to the most common questions about Venmo including, is Venmo safe?

Home / News / IRS Delays E-Commerce Taxes
Share
FacebookTweetEmailLinkedIn

Related Stories

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
Markets

Oct 23, 2023

Chevron Gas Deal

Chevron is acquiring Hess Corp. for $53 billion, the second significant oil producer acquisition this month as crude prices climb.

Key Details

  • Chevron is purchasing Hess in an all-cash deal worth $53 billion, including debt and preferred stock redemption.
  • This comes just weeks after ExxonMobil announced its $59.5 billion purchase of Pioneer Natural Resources.
  • With oil over $80 per barrel, major producers are using their windfall profits to acquire smaller players and boost payouts to shareholders.
  • Chevron expects the deal to close in H1 2023 pending regulatory approvals and Hess shareholder vote.
  • Hess CEO John Hess will join Chevron's board once the acquisition is complete.

Go deeper

FacebookTweetEmailLinkedIn
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff
netflix building
Entertainment

Oct 19, 2023

Netflix Hiking Prices While Adding Millions of Subscribers

by Colin Baker Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com