New York s Noncompete Bill Is A Big Domino To Fall And The Broadest Ban Yet In A Growing Movement Against ThemThe recommendations also highlight areas of concern focused on Form 1099-K reporting. Form 1099-K was created under the 2008 Housing and Economic Recovery Act and debuted in 2011. The original thresholds only required payers to report transactions where gross payments exceeded $20,000 with more than 200 transactions.
The most recent Taxpayer Advocate's Annual Report to Congress notes that"not only does e-filing result in quicker and better service from a taxpayer perspective, but it also saves the IRS resources." A paper-filed return may need to be handled by multiple employees during processing. In contrast, the IRS processes an e-filed return using automation and only requires someone to step in if there's a problem. According to the IRS, a paper-filed Form 1040 costs $7.
Of the 776 applications the IRS uses, 259, or 33%, are considered legacy because they are either 25 years or older or are written in an obsolete programming language. And while software is considered legacy when it is two or more versions behind the current version, 32% of legacy software used by the IRS is at least four versions behind the current version commercially available.