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Today in the Market (12/27/2022)

Good Evening. After a lengthy holiday weekend, Wall Street resumed trading on Tuesday for the last four trading days of 2022. U.S. equities concluded with a mixed performance.

The S&P 500 decreased by 0.40%, while the Nasdaq Composite declined by 1.38%. The Dow Jones split went the other direction, rising 0.11%.

ALL I WANT IS TO GET ON A FLIGHT

Southwest Airlines (LUV) is the subject of inquiries from both ends of Pennsylvania Avenue after huge flight delays during the three-day holiday weekend, with 70% of the airline’s planned flights canceled on Monday alone.

On one front, President Biden and his Transportation Department have pledged to investigate the company’s compliance with their customer service strategy. Then, on Tuesday afternoon, a strong Senate committee declared its intention to investigate the matter.

Moving forward… Southwest Airlines created a new website where clients may attempt to rebook or get a refund. However, The Department of Transportation wants more and tweeted Monday night that it was “concerned by Southwest’s unacceptable rate of cancellations and delays, as well as reports of untimely customer service.”

ONE LESS 1099-K TAX FORM

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The Internal Revenue Service (IRS) is postponing the implementation of a new $600 reporting threshold for 1099-K tax forms, a decision that many tax professionals think may prevent possible filing season pandemonium.

The American Rescue Plan required third-party transaction networks such as Venmo, Paypal, eBay, and Etsy to produce a 1099-K to users who had more than $600 in payment transactions during the year. Before this, the barrier was $20,000 for more than 200 transactions.

The lower reporting requirement was meant to capture electronic cash revenues from side jobs, part-time labor, and small enterprises, but experts were concerned that many taxpayers would have gotten 1099-K forms for nontaxable personal transactions.

What does this mean for the IRS? Experts anticipate that the delay will provide the IRS with more time to ensure a seamless transition when the reporting threshold is finally implemented. It also provides the IRS time to deliver thorough guidelines to third-party platforms, allowing them to properly distinguish between taxable and non-taxable transactions.

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