Congress lowered the reporting threshold for 1099K reporting from $20,000 down to $600 in the American Rescue Plan of 2021.  This law requires payment processors such as Paypal and Venmo to report on Form 1099K any amounts more than $600 for each tax year starting in 2022.  In December 2022, the IRS announced a delay in the requirement of filing the Form 1099K until tax year 2023.  This does not change a taxpayer’s requirement to report all taxable income on their annual tax return.

Arizona House Bill 2871 which was signed into law on June 28, 2022, revised the tax rate applicable for pass-through entities (PTEs) from a fixed rate of 4.5% to rates ranging from 2.59 to 4.5% which are in line with the 2021 existing tax rates.  The pass-through tax was enacted to enable taxpayer who were previously limited by the $10,000 SALT limit to deduct Arizona taxes paid by their pass-through entities.