Read twice and referred to the Committee on Finance.
This bill restores the pre-American Rescue Plan Act de minimis exception for third party settlement organizations (TPSOs), requiring 1099-K reporting only when a participating payee’s annual aggregate payments exceed $20,000 and the number of transactions exceeds 200. It also aligns backup withholding treatment so TPSO payments count for backup withholding only if those same thresholds are exceeded, with an exception if prior-year payments were reportable.
Privacy and burden reduction vs concerns about tax compliance and revenue.
Relative to its intended legislative type, this bill is a clear and specific substantive amendment to the Internal Revenue Code that reinstates the prior de minimis reporting threshold for third party settlement organizations and applies that de minimis rule to backup withholding.
This bill restores the pre-American Rescue Plan Act de minimis exception for third party settlement organizations (TPSOs), requiring 1099-K reporting only when a participating payee’s annual aggregate payments exceed $20,000 and the number of transactions exceeds 200.
It also aligns backup withholding treatment so TPSO payments count for backup withholding only if those same thresholds are exceeded, with an exception if prior-year payments were reportable.
The reinstatement is treated as if included in the ARPA change, and the backup withholding amendment applies to calendar years beginning after December 31, 2024.
Technically narrow and administratively simple, but reduces IRS reporting and could be folded into larger tax or omnibus legislation rather than pass alone.
Relative to its intended legislative type, this bill is a clear and specific substantive amendment to the Internal Revenue Code that reinstates the prior de minimis reporting threshold for third party settlement organizations and applies that de minimis rule to backup withholding. It precisely identifies the statutory provisions to be changed and provides effective-date language.
Privacy and burden reduction vs concerns about tax compliance and revenue.
These are examples from the analysis, not a ranked list of the most-affected groups.
Privacy and burden reduction vs concerns about tax compliance and revenue.
Mixed reaction: welcomes reduced reporting burden and privacy protections for low-income and gig workers, but worries about weakened tax enforcement and potential revenue loss.
Likely to request evidence this rollback won’t materially increase underreporting or harm funding for social programs.
Might support with strict anti-fraud safeguards and monitoring.
Cautious support: values lower compliance burdens and clearer thresholds, but wants measured safeguards and data collection to monitor revenue and compliance effects.
Sees pragmatic benefit for administrative simplicity if paired with oversight or a sunset review.
Generally favorable: views the bill as limiting federal overreach, protecting privacy, and cutting regulatory burden on small sellers.
Sees reinstated thresholds as common-sense relief from intrusive reporting requirements imposed on ordinary Americans.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technically narrow and administratively simple, but reduces IRS reporting and could be folded into larger tax or omnibus legislation rather than pass alone.
The bill has not accumulated any surfaced votes yet.
Privacy and burden reduction vs concerns about tax compliance and revenue.
Technically narrow and administratively simple, but reduces IRS reporting and could be folded into larger tax or omnibus legislation rather…
Relative to its intended legislative type, this bill is a clear and specific substantive amendment to the Internal Revenue Code that reinstates the prior de minimis reporting threshold for third party settlement organiz…
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