To amend the Internal Revenue Code of 1986 to modify the exception for de minimis payments by third party settlement organizations.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The bill exempts reinstates the pre-American Rescue Plan Act de minimis exception for third party settlement organizations (like PayPal, Venmo, eBay), requiring 1099-K reporting only when a seller receives more than $10,000 and exempts applies the de minimis threshold ($10,000 or 50 transactions) to backup withholding rules for third-party network transactions, so that backup withholding only applies when sellers exceed the reporting threshold. It relies on exemptions. The main policy areas are Finance, Technology, Taxation, and Trade.
Who Benefits and How
Third-party payment settlement organizations (PayPal, Venmo, Stripe, Square) could face lower compliance burdens, Online marketplace operators (eBay, Etsy, Amazon Marketplace) could face lower compliance burdens, and Small online sellers and gig workers using payment platforms could face lower compliance burdens.
Who Bears the Burden and How
Internal Revenue Service could lose revenue opportunities.
Key Provisions
- Exempts reinstates the pre-American Rescue Plan Act de minimis exception for third party settlement organizations (like PayPal, Venmo, eBay), requiring 1099-K reporting only when a seller receives more than $10,000...
- Exempts applies the de minimis threshold ($10,000 or 50 transactions) to backup withholding rules for third-party network transactions, so that backup withholding only applies when sellers exceed the reporting threshold.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill exempts reinstates the pre-American Rescue Plan Act de minimis exception for third party settlement organizations (like PayPal, Venmo, eBay), requiring 1099-K reporting only when a seller receives more than $10,000 and exempts applies the de minimis threshold ($10,000 or 50 transactions) to backup withholding rules for third-party network transactions, so that backup withholding only applies when sellers exceed the reporting threshold.
Key Policy Areas
Finance, Technology, Taxation, Trade
Primary Purpose
The bill exempts reinstates the pre-American Rescue Plan Act de minimis exception for third party settlement organizations (like PayPal, Venmo, eBay), requiring 1099-K reporting only when a seller receives more than $10,000 and exempts applies the de minimis threshold ($10,000 or 50 transactions) to backup withholding rules for third-party network transactions, so that backup withholding only applies when sellers exceed the reporting threshold.
Policy Domains
Section 2 - Reinstatement of De Minimis Exception
Identified Gains
- Third-party payment settlement organizations (PayPal, Venmo, Stripe, Square)
- Online marketplace operators (eBay, Etsy, Amazon Marketplace)
- Small online sellers and gig workers using payment platforms
- Small online sellers and gig workers (participating payees)
Identified Costs
- Internal Revenue Service
Sponsors
Legislative Progress
IntroducedMr. Cassidy (for himself and Ms. Hassan) introduced the following …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Third-party payment settlement organizations (PayPal, Venmo, Stripe, Square)
Small online sellers and gig workers (participating payees), Small online sellers and gig workers using payment platforms
Online marketplace operators (eBay, Etsy, Amazon Marketplace)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "third_party_settlement_organization"
- → Payment platforms like PayPal, Venmo, Stripe, eBay, Etsy that process transactions
- "payor"
- → Third party settlement organizations making payments to participating payees
Key Definitions
Terms defined in this bill
Third party network transaction payments are reportable only if they exceed the de minimis thresholds
Required to report only if transactions exceed $10,000 OR aggregate number exceeds 50
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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