Small businesses no longer need to report payments under $600 to the IRS

The US Treasury Department is raising the threshold for reporting payments made by businesses. Businesses will no longer have to tell the IRS about payments under $600 to individual contractors or service providers.

For decades, businesses had to report every payment over $600 to the IRS, creating a lot of paperwork for small transactions. This change means fewer forms for businesses and less data for the IRS to process. It also means the IRS will have less visibility into smaller income streams for contractors and gig workers.