Two Tax Reporting Changes Coming for Businesses

The major tax and spending bill that President Donald Trump signed the bill into law on July 4  reverses more stringent tax-reporting requirements for payment apps when it comes to telling the IRS how much small businesses are taking in via business transactions on their platforms, CNN reported.

Regarding payment apps like Venmo, the new tax law reinstates a 200 transactions/US$20,000 threshold rule that was in effect prior to 2024. For the past two years, payment apps only had to report a person’s business transactions if they were more than $5,000 in 2024 and more than $2,500 this year.

Another change prompted by the new law will result in less paperwork required for businesses and upends decades of practice regarding 1099-NEC or 1099-MISC forms. Until the law passed, businesses have been required to issue 1099-NEC or 1099-MISC forms to report to the IRS the nonemployee compensation they pay on a one-off basis to independent contractors and vendors throughout the year. This can include cleaning staff, landscapers, lawyers, and accountants. The new law increases the required reporting threshold from $600 paid for services rendered to $2,000, starting after Dec. 31. The $2,000 will be adjusted for inflation annually.

As CMM previously reported, the legislation  includes several key tax provisions that will directly benefit the cleaning and facility-solutions industries.