What We’re Fighting For
Brought Increased Certainty to 1099-K Reporting
Passage of the Big Beautiful Bill into law included a provision that improved the 1099-K reporting threshold that helps small businesses and gig workers better navigate tax compliance. The Biden administration’s American Rescue Plan Act previously slashed the 1099-K reporting threshold for small businesses from $20,000 and 200 transactions to just $600. This created a massive tax and paperwork burden on entrepreneurs and gig workers who use digital wallets. Increasing the information-reporting threshold is welcome news to small businesses and entrepreneurs in our growing gig economy.
Eliminated Direct File
One of AIA’s priorities since its inception has been to end the Direct File program, an IRS power grab that threatened to consolidate even more power in the hands of unelected bureaucrats. The “free” tool, which began without Congressional authorization, was plagued by inefficiencies and significant cost overruns at the expense of the American taxpayer. The program was one of the primary examples of an IRS comprised of unelected bureaucrats operating with unchecked power. AIA has successfully advocated for prohibiting the use of taxpayer funds to implement Direct File, and its termination marks a substantial win for the American Taxpayer.
DISBANDING IRS PASS-THROUGH AUDIT TEAM
The new IRS pass-through audit team is a prime example of government weaponization and bureaucratic inefficiency. Created under the Biden Administration, this unit operates outside traditional IRS structures, creating confusion for taxpayers and enforcing arbitrary tax rulings that contradict established law. It unfairly targets law-abiding Americans—especially those investing in business partnerships following the long-established clear rules of the Code. With excessive resources and unclear oversight, this unit undermines due process and burdens taxpayers with unnecessary audits. We call on the Administration and Congress to prevent the IRS from overstepping its authority by eliminating the new pass-through audit team that has allowed the IRS to target political opponents.
