Bill > S1725

This bill, the Red Tape Reduction Act of 2023, proposes to modify the exception for de minimis (small or trivial) payments by third-party settlement organizations, such as payment processors or online marketplaces, that are required to report these payments to the Internal Revenue Service (IRS) under Section 6050W of the Internal Revenue Code. Specifically, the bill would raise the threshold for reporting such payments from the current limit of any amount over $20,000 and 200 transactions to either payments not exceeding $10,000 or transactions not exceeding 50 per participating payee. This change is intended to reduce the administrative burden on third-party settlement organizations and participating payees, such as small businesses or individual sellers, by exempting more of their transactions from the reporting requirement.