# 119-s-1425: Red Tape Reduction Act of 2025

119-s-1425, Red Tape Reduction Act of 2025, is a 119th Congress bill sponsored by Sen. Cassidy, Bill [R-LA] (R-LA); status introduced; PRIA reads it as touching household money (as of 2026-11-01).

- Canonical: https://policyrisk.com/legislation/119-s-1425
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-1425
- Congress: 119
- Title: Red Tape Reduction Act of 2025
- Status: introduced
- Introduced: 2025-04-10
- Sponsor: Sen. Cassidy, Bill [R-LA] (R-LA)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-11-01

## 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. - 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.

## Cosponsors (1)

- Sen. Hassan, Margaret Wood [D-NH] (D-NH), 2025-04-10T00:00:00.000Z

## Provisions PRIA read

- Less reporting and withholding for sellers: benefit, medium. 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…

## Related bills

- 119-s-4744: Take Care of America’s Veterans Act
- 119-s-2120: Older Americans Act Reauthorization Act of 2025
- 119-s-2121: SUPPORT for Patients and Communities Reauthorization Act of 2025
- 119-s-1748: Kids Online Safety Act
- 119-s-3265: Improve and Enhance the Work Opportunity Tax Credit Act
- 119-s-882: Patients Before Middlemen Act

## Sources
- [119-s-1425 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/1425)

## Related
- [119-s-4744: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-s-4744)
- [119-s-2120: Older Americans Act Reauthorization Act of 2025](https://policyrisk.com/legislation/119-s-2120)
- [119-s-2121: SUPPORT for Patients and Communities Reauthorization Act of 2025](https://policyrisk.com/legislation/119-s-2121)
- [119-s-1748: Kids Online Safety Act](https://policyrisk.com/legislation/119-s-1748)
- [119-s-3265: Improve and Enhance the Work Opportunity Tax Credit Act](https://policyrisk.com/legislation/119-s-3265)
- [119-s-882: Patients Before Middlemen Act](https://policyrisk.com/legislation/119-s-882)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-1425 (as of 2026-11-01).