This week, Congresswoman Nicole Malliotakis (NY-11) reiterated her stance on reducing the paperwork burden for online sellers who earn at least $600. As part of the House Ways and Means Committee, she is pushing to raise the threshold to $20,000 for those completing a minimum of 200 transactions. This initiative aims to alleviate excessive reporting requirements for casual sellers.
“I will continue working to cut red tape from burdensome 1099-K reporting requirements so they can stop wasting time on unnecessary paperwork and instead use their energy to create new opportunities for their small businesses,” said Rep. Nicole Malliotakis. “As more Americans turn to resold, refurbished, and repaired items, I applaud the efforts of leading industry platforms to create trusted spaces for buying and selling in the growing secondhand economy, but despite this progress, casual sellers continue to face increasing bureaucratic hurdles under the current 1099-K threshold making it urgent for Congress to take action.”
Malliotakis was recently joined by Vivian Vassar, a Staten Island small business owner and founder of “Hey Viv,” an online retro clothing store operating for over 35 years. Together they advocated against the Biden-era policy at a Capitol event launching a caucus supporting online small businesses.
“As a Staten Island business, I’m encouraged to see the Recommerce Committee focusing on policies that support and strengthen online businesses, helping to keep US e-commerce strong and competitive,” said Vivian Vassar.
The 1099-K reporting impact on casual sellers is significant as tax requirements increasingly affect the recommerce economy—resale, repair, and refurbishment of goods—which is projected to reach $1.04 trillion globally by 2035. In 2024 alone, 58% of consumers purchased secondhand apparel with most transactions occurring online. The proposed changes are included in a House tax bill crafted with Malliotakis’s input that could become law soon.
Rep. Malliotakis has also partnered with Rep. Sydney Kamlager-Dove (CA-37) in launching the bipartisan Recommerce Caucus aimed at empowering small sellers through supportive policies.
“As a lifelong thrifter and advocate for sustainable business practices, I’m proud to partner with Rep. Malliotakis to launch the bipartisan Recommerce Caucus,” said Rep. Sydney Kamlager-Dove. “Recommerce is more than a trend — it’s a growing economic engine that provides consumers with affordable, high-quality goods and gives entrepreneurs, small businesses, and resellers access to trusted, thriving marketplaces.”
The caucus receives endorsements from major platforms such as eBay, Etsy, Mercari among others.
