Description

The $600 reporting threshold has been part of the information-reporting landscape for decades — but where did it actually come from, and why did it stay frozen in time for so long?

In this episode of Information Return Intelligence, Jason Dinesen digs into the history of the $600 threshold just as it prepares to disappear. Starting in 2026, the long-standing $600 amount under IRC §6041 will be replaced by a $2,000 threshold, indexed for inflation — a change finalized in 2025 legislation.

Jason walks listeners through more than a century of tax history, explaining:

• Why the IRS could never adjust the $600 threshold on its own
• How information reporting didn’t even exist in the original 1913 income tax law
• When information reporting was first introduced (and at what dollar amount)
• How the threshold moved up and down throughout the 1930s and 1940s
• Why 1954 is the key year for modern information reporting — even though the $600 figure predates it
• Fun historical side notes on early 1099 forms, including the rise, fall, and resurrection of Form 1099-NEC

If you’ve ever wondered why $600 became the magic number — or want solid historical context as we move into a new era of reporting thresholds — this episode connects the dots.

Key Takeaway:
The $600 threshold wasn’t arbitrary — but it also wasn’t inflation-proof. Its replacement marks one of the most meaningful structural changes to information reporting in decades.