Federal RuleAug 21
62
DOL Rewrites Disability Rules for 'Merit-Based Opportunity' Push
RuleLabor DepartmentFederal Contract Compliance Programs OfficeSignificant Wallet
119-s-1425119th CongressWALLET
Red Tape Reduction Act of 2025
Sponsored By: Senator Cassidy, Bill [R-LA]
Introduced
Summary
Higher de minimis reporting thresholds would be reinstated for third party settlement organizations, reducing small-transaction reporting. The bill would also align backup withholding rules for third party network transactions with those thresholds and take effect for transactions and calendar years after December 31, 2024.
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- Third party settlement organizations: They would report third party network transactions for a participating payee only if the amount exceeds $10,000 or the number of transactions exceeds 50 in a year. This returns reporting to the pre-ARPA standard.
- Participating payees (small sellers, gig workers): Fewer small payments would be reported to the IRS and fewer payees would face backup withholding unless both the count and dollar thresholds are exceeded in the same calendar year. There is a special rule that changes the test if a prior year already had reportable payments.
- Tax administration and compliance: The bill reduces routine reporting for low-value activity and explicitly ties backup withholding to the reinstated thresholds, preserving ARPA-era adjustments only where the new thresholds are not met.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Less reporting and withholding for sellers
If enacted, third-party payment platforms would only have to send information reports (like Form 1099-K) for a seller when either total receipts exceed $10,000 or the seller has more than 50 transactions. If enacted, backup withholding on third-party network payments would apply only when both the seller has more than 50 transactions in the calendar year and their receipts exceed $10,000 that year. There is one exception: the two-part withholding test would not block withholding in a year if the payor made reportable payments to that seller in the prior calendar year. The reporting change would apply to transactions settled after December 31, 2024, and the withholding rule would apply to calendar years beginning after December 31, 2024.
Sponsors & CoSponsors
Sponsor
Cassidy, Bill [R-LA]
LA • R
Cosponsors
Sen. Hassan, Margaret Wood [D-NH]
NH • D
Sponsored 4/10/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov