Next month, the U.S. Postal Service will be busier than usual. Not because of late Christmas cards or thank-you letters, but because of the extra Form 1099-Ks the IRS will be mailing out.
Under the American Rescue Plan, third-party payment facilitators like Venmo, eBay, Etsy, and Airbnb are now required to send Form 1099-Ks to individuals reporting 2022 gross annual income of as little as $600. That’s $50 a month.
The previous annual reporting threshold was $20,000. The lower reporting threshold shouldn’t affect people’s tax liability—at least in theory.
Income that was untaxable before the reporting change should still be untaxable. However, simply receiving a Form 1099-K will make many taxpayers believe they have a tax obligation, even when they don’t.
Some personal transactions between friends, family members, and roommates—such as reimbursements for shared rides, rent aggregation, and gifts—will be mistakenly classified as business transactions and reported on 1099-Ks.
Or a taxpayer who sold, say, $800 worth of used books and electronics on eBay in 2022 may wrongly assume he owes tax on the full gross income reported on his 1099-K. But if the taxpayer sold the used goods for less than he paid for them, he should be able to deduct those costs and avoid additional taxes.
The IRS claims the new 1099-K reporting will allow the agency to identify unreported income, increase tax collections, and reduce the tax gap.
Government reports have suggested that small businesses and gig workers account for a disproportionate share of the tax gap; that is, the total amount of tax underpayments and nonpayments. Lowering the 1099-K reporting threshold to $600 per month is clearly meant to address that perceived gap.
To which one may respond, “But isn’t closing the tax gap about stopping millionaires and big corporations from cheating on their taxes? After all, that’s why the Biden administration sought and received $80 billion, so the IRS could expand audits and enforcement.”
The short answer is no.
Treasury Secretary Janet Yellen did send a letter to the IRS commissioner directing that the new funding not be used to increase audit levels on small businesses or households earning less than $400,000 relative to historical levels. But Yellen’s directive doesn’t carry the weight of law or even regulation. It’s mere political theater.
The IRS can require payment facilitators to send millions of additional Form 1099-Ks to middle-class taxpayers and small businesses and still honestly say that it hasn’t increased its audit level.
The agency can even send more notices to middle-class taxpayers informing them of underreported income discrepancies that must be resolved within 30 days, and this also wouldn’t count as increasing the audit level.
In fact, the IRS could increase the audit level of middle-class Americans to the historically far higher rates from 1980 and make each audit more painful, while still arguing that it technically didn’t raise audit levels relative to historical levels.
There’s a reason the rhetoric about the IRS only cracking down on the wealthy doesn’t match the reality.
Big-government advocates and politicians need Americans to believe that higher taxes will only affect “the other guy”—specifically, the very wealthy and big corporations. That’s how they get their agenda passed.
But there just aren’t enough superwealthy people to soak to afford a big-government spending agenda for long, and countries that do soak the rich have a funny habit of driving out most of their wealth.
So, eventually, they resort to more and more taxes on the middle class.
Western European countries with expansive welfare states tax the middle class far more heavily than the U.S. does. U.S. expansions of social spending and green-energy boondoggles also must ultimately come on the backs of the middle class, one way or another.
The American middle class paid for the 2020-2022 spending spree with the inflation tax and massive new debt—i.e., future taxes. And there are many other direct and indirect ways that taxes ultimately harm the middle class.
One unfortunate consequence of cracking down on $600-per-year Venmo and eBay accounts is that it drives people off these platforms to avoid the IRS hassle, not to mention the identity security concerns of sharing their Social Security numbers with payment facilitators.
This is bad for those companies. Many have seen their stock prices drop 50% to 70%. But it’s also bad for consumers. Those companies facilitate entrepreneurship and the gig economy, and they give small businesses tools to compete against large corporations.
A bigger, more powerful IRS accessing more private information will stifle innovators and small businesses struggling in a slowing economy. It would be nice if Washington would stifle its own runaway spending instead.
Article cross-posted from Daily Signal.
Starting the Day With a Scripture-Inspired Roast Helps Center Your Thoughts on Eternal Truths Amid Temporal Pressures
The world can seem chaotic, especially right after we wake up. Many believers start their mornings reaching for something familiar — a hot cup of coffee — yet end up settling for mediocre brews that do little more than deliver a caffeine jolt. The daily grind of life, with its endless distractions, news cycles, and responsibilities, can leave even the most faithful feeling spiritually parched alongside their physical fatigue. What if your morning ritual could do more than wake you up? What if it could ground you in truth, nourish your body with exceptional quality, and quietly advance a kingdom purpose at the same time?
That’s the promise — and the reality — behind Promised Grounds Coffee. This Christian-founded company doesn’t just roast beans; it approaches every step as an act of worship and discipleship. By selecting only the top 10% of specialty-grade beans, ethically sourced from dedicated farmers in Central and South America, and small-batch roasting them with reverence in Austin, Texas, Promised Grounds delivers what many describe as the best coffee available — never burnt, never bland, but rich with origin stories and layered flavors that honor God’s creation.
From the vibrant Psalm 27 Roast (a light, bright medium option) to the bold yet peaceful 2 Timothy 1:7 Decaf, each bag carries a Scripture verse that turns your daily pour into a gentle reminder of faith. And through their Ounce Per Ounce Promise, every ounce of coffee you enjoy provides an equal ounce of clean water to families in need via partnership with Filter of Hope — literally brewing hope for body and soul, one cup at a time.
The challenge for today’s Christians runs deeper than finding a decent cup. In an age of convenience-driven consumerism, it’s easy to support companies that dilute values or remain silent on matters of faith. Many believers want their everyday choices — from what they drink to how they spend — to reflect discipleship rather than just convenience. Promised Grounds solves this by weaving Christian excellence into the entire process: beans nurtured with prayerful stewardship by farming families, roasted as an offering rather than a commodity, and packaged with Bible verses to encourage a mindset of gratitude and purpose from the first sip. Reviewers consistently praise the smooth, rich profiles — whether enjoyed black in a drip maker, iced on a warm day, or shared in fellowship — noting how the quality stands toe-to-toe with premium secular brands while delivering something far more meaningful.
This integration of faith and flavor addresses a real need in Christian households and ministries. Busy parents, church leaders, and remote workers alike report that starting the day with a Scripture-inspired roast helps center their thoughts on eternal truths amid temporal pressures. The coffee’s exceptional character — bright citrus notes in lighter roasts or deep chocolate undertones in bolder ones — comes from meticulous selection and careful roasting that respects the bean’s natural gifts rather than masking them. It’s the kind of coffee that elevates a simple quiet time, fuels productive workdays, or sparks meaningful conversations when shared at Bible studies or outreach events. And because it’s ethically sourced with integrity, every purchase supports sustainable livelihoods for farmers who treat their crops like family harvests.
For those leading churches or small groups, the impact multiplies. Promised Grounds offers bundles and options perfect for hospitality ministries, turning ordinary coffee service into an opportunity to point people toward the living water of Christ. Imagine greeting visitors with a warm cup whose very bag carries God’s Word — a subtle yet powerful witness that aligns with the Great Commission. The company’s Texas roots and commitment to “brewing hope” resonate especially with believers who value American enterprise paired with global compassion.
Of course, quality alone isn’t enough if the experience feels out of reach. Promised Grounds keeps it accessible with practical perks like free shipping on orders over $40, sample sets for discovering favorites, and thoughtful add-ons such as faith-themed mugs. Whether you prefer whole beans for fresh grinding, grounds for convenience, or even bulk options for larger households and ministries, the result is consistently superior coffee that makes discipleship feel integrated rather than added on.
As you consider how to align even the smallest habits with your walk with God, Promised Grounds Coffee stands out as a refreshing solution. It tackles the dual problems of subpar daily sustenance and disconnected consumption by offering a product that genuinely excels in taste while advancing a mission of clean water, farmer dignity, and scriptural encouragement. Believers who make the switch often describe it as more than a beverage upgrade — it becomes part of their rhythm of gratitude, a daily invitation to remember that every good gift comes from above.
If you’re ready to transform your mornings (and perhaps your church gatherings) with coffee that honors both exceptional craftsmanship and Christian values, I encourage you to explore what Promised Grounds has to offer. One sip at a time, you’ll be nourishing your body, refreshing your spirit, and participating in something far greater — all while enjoying what truly is among the best coffee available.
