I got a 1099K from Paypal for 2020 for around $2000. From what I was told later when I mentioned that, I was told several states including my garbage state required this reporting a year earlier. I had no records to back up what I paid for items I'd sold, some payments were from a friend who paid me several times over the years and I hadn't noticed he'd neglected to select friends and family for the funds he sent me.
I stressed about it when doing my taxes, and reported a few hundred of those payments as profits just to be on the safe side even though I am not sure any of that $2000 was actually profit. I learned my lesson, I didn't get a 1099 from Paypal for 2021, because I am wary of selling anything any more. Which is too bad as I still have stuff I'd like to get rid of, but it has become more trouble than it is worth.
I can agree that it is wrong that some people have been running profitable businesses and cheating on their taxes on their sales, and this new move may help crack down on that. But the net was cast too wide and really caused a lot of problems for many people who just want to do what is the equivalent as have a garage sale.