CHARLESTON, W.Va. (WBOY) — The Internal Revenue Service (IRS) has come to the decision to delay the implementation of a tax reporting requirement found in the American Rescue Plan by one year.

Normally, only taxpayers who exceed 200 transactions totaling $20,000 in a tax year would be issued a 1099-K tax form by the IRS, but in the American Rescue Plan, “any electronic payments and transactions from online platforms, apps, or payment card processors equal to $600 will qualify for the 1099-K requirement,” according to a release from the Office of Senator Shelley Moore Capito.

The decision to delay comes after Senator Capito introduced an amendment to the Fiscal Year (FY) 2023 omnibus package that would delay the reporting requirement by one year.

The reason for the delay has to do with the sheer number of people who would qualify under the new requirements, preventing “30 to 50 million new forms from being sent out next month,” the release said.

In addition to Senator Capito’s amendment, Congresswoman Carol Miller helped Capito introduce the Emergency Taxpayer Paperwork and Audit Relief Act in a similar effort to delay the requirement.

“This very provision was included in the American Rescue Plan that was passed with only Democrat support two years ago,” Senator Capito said. “I am glad that the IRS moved to issue the exact one-year delay I have been pushing for by offering an amendment this week to delay for a year, but I am concerned about what authority they have to enforce their delay and will continue working to find a lasting solution.”

“This is a great relief for taxpayers, small businesses, payment platforms, online marketplaces, and the Internal Revenue Service, who will all be saved from an avalanche of tax forms that were expected to hit in just a number of days,” Congresswoman Miller said. “Now, tens of millions of taxpayers are left in limbo as the courts will need to decide the legality of this action from the Biden administration. Congress must act immediately to enshrine the former $20,000 and 200 transaction threshold into law permanently.”