summary
Introduced
03/05/2025
03/05/2025
In Committee
03/05/2025
03/05/2025
Crossed Over
Passed
Dead
Introduced Session
119th Congress
Bill Summary
an Act, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 5, 2025 Mrs. MILLER of West Virginia (for herself, Mr. BUCHANAN, Mr. SMITH of Nebraska, Mr. KELLY of Pennsylvania, Mr. SCHWEIKERT, Mr. LAHOOD, Mr. ARRINGTON, Mr. ESTES, Mr. SMUCKER, Mr. HERN of Oklahoma, Mr. MURPHY, Mr. KUSTOFF, Mr. FITZPATRICK, Mr. STEUBE, Ms. TENNEY, Mrs. FISCHBACH, Mr. MOORE of Utah, Ms. VAN DUYNE, Mr. FEENSTRA, Ms. MALLIOTAKIS, Mr. CAREY, Mr. YAKYM, Mr. MILLER of Ohio, Mr. BEAN of Florida, and Mr. MORAN) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to reinstate the exception for de minimis payments by third party settlement organizations with respect to returns relating to payments made in settlement of payment card and third party network transactions, as in effect prior to the enactment of the American Rescue Plan Act, and for other purposes.
AI Summary
This bill aims to modify reporting requirements for third-party payment platforms (like Venmo, PayPal, or Cash App) by reinstating a previous tax reporting threshold that was changed by the American Rescue Plan Act. Specifically, the bill would require third-party settlement organizations to only report transactions to the IRS when a user's annual transactions exceed both $20,000 AND 200 total transactions in a calendar year, which effectively restores a "de minimis" (minimal) reporting exception that existed prior to 2021. The bill also modifies backup withholding rules to align with these new reporting thresholds, meaning payments would only be subject to additional tax withholding if they meet the same $20,000 and 200-transaction criteria. This change is designed to reduce tax reporting burdens for gig economy workers, freelancers, and individuals who occasionally use digital payment platforms for personal transactions like splitting bills or selling personal items. The provisions would take effect for calendar years beginning after December 31, 2024, providing clarity for taxpayers and payment platforms about their future reporting obligations.
Committee Categories
Budget and Finance
Sponsors (32)
Carol Miller (R)*,
Jodey Arrington (R),
Aaron Bean (R),
Gus Bilirakis (R),
Mike Bost (R),
Vern Buchanan (R),
Mike Carey (R),
Monica De La Cruz (R),
Neal Dunn (R),
Ron Estes (R),
Randy Feenstra (R),
Michelle Fischbach (R),
Brian Fitzpatrick (R),
Brandon Gill (R),
Diana Harshbarger (R),
Kevin Hern (R),
Mike Kelly (R),
David Kustoff (R),
Darin LaHood (R),
Nicole Malliotakis (R),
John McGuire (R),
Max Miller (R),
Blake Moore (R),
Nathaniel Moran (R),
Greg Murphy (R),
David Schweikert (R),
Adrian Smith (R),
Lloyd Smucker (R),
Greg Steube (R),
Claudia Tenney (R),
Beth Van Duyne (R),
Rudy Yakym (R),
Last Action
Referred to the House Committee on Ways and Means. (on 03/05/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/119th-congress/house-bill/1882/all-info |
| BillText | https://www.congress.gov/119/bills/hr1882/BILLS-119hr1882ih.pdf |
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