Millions of people are about to face an unexpected headache next tax season. Hidden within the American Rescue Plan Act of 2021 was a provision that drastically lowered the reporting threshold for transactions through third-party payment platforms such as Venmo, Apple Pay, and PayPal. With the threshold lowered from $20,000 across 200 transactions to a mere $600, millions of gig economy workers and casual sellers who rely on platforms such as Uber or Etsy to cover everyday expenses are about to be hit with a deluge of 1099-K forms — and the confusion and possible tax liabilities that come with them.

Before the American Rescue Plan Act, taxpayers rarely encountered the 1099-K form unless they were running a small business. Under the act’s new threshold, a single sale of college textbooks on eBay or a casual transfer of funds between family or friends could generate a 1099-K, forcing taxpayers to sift through piles of unnecessary paperwork. The IRS projects that 44 million of these forms will be sent out next tax season, three times more than the estimate for 2023.