History of Form 1099
A journey through the evolution of Form 1099 and its significance in reporting income.
- 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Expanded Form 1099 requirements to include payments for goods and services, later repealed.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Repealed the expanded 1099 requirements for goods and services payments introduced by the Affordable Care Act.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