This bill amends the Internal Revenue Code to raise the reporting threshold for third party settlement organizations (like payment apps) back to $20,000 and 200 transactions per year, reversing the lower threshold set by the American Rescue Plan Act. It also applies this higher threshold to backup withholding rules for third party network transactions.
Sec. 2, Reinstatement of exception for de minimis payments: This section changes the reporting requirement for third party settlement organizations so they only have to report payments to a payee if the total amount exceeds $20,000 and the number of transactions exceeds 200 in a year. This change takes effect as if it were part of the original American Rescue Plan Act.
Sec. 3, Application of de minimis rule to backup withholding: This section adds a new rule to backup withholding. Payments from third party network transactions are treated as reportable payments only if the number of transactions exceeds 200 and the total amount exceeds $20,000 in a calendar year. However, if the payee had reportable payments in the prior year, this exception does not apply. These changes apply to calendar years starting after December 31, 2024.
Summary of the bill text as introduced in House (Mar 5, 2025), generated by SecBot from the official bill text; the Library of Congress summary is not yet published.
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HouseIntroduced in HouseMar 5, 2025
HouseReferred to the House Committee on Ways and Means.Mar 5, 2025
House Ways and Means CommitteeReferred To Mar 5, 2025
Sponsor and cosponsors31 cosponsors
Rep. Carol Miller (R-WV-1)Sponsor, Mar 5, 2025
Aaron Bean (R-FL-4)OriginalJoined Mar 5, 2025
Adrian Smith (R-NE-3)OriginalJoined Mar 5, 2025
Beth Van Duyne (R-TX-24)OriginalJoined Mar 5, 2025
Blake Moore (R-UT-1)OriginalJoined Mar 5, 2025
Brian Fitzpatrick (R-PA-1)OriginalJoined Mar 5, 2025
Claudia Tenney (R-NY-24)OriginalJoined Mar 5, 2025
Darin LaHood (R-IL-16)OriginalJoined Mar 5, 2025
David Kustoff (R-TN-8)OriginalJoined Mar 5, 2025
David Schweikert (R-AZ-1)OriginalJoined Mar 5, 2025
Gregory Murphy (R-NC-3)OriginalJoined Mar 5, 2025
Jodey Arrington (R-TX-19)OriginalJoined Mar 5, 2025
Kevin Hern (R-OK-1)OriginalJoined Mar 5, 2025
Lloyd Smucker (R-PA-11)OriginalJoined Mar 5, 2025
Max Miller (R-OH-7)OriginalJoined Mar 5, 2025
Michelle Fischbach (R-MN-7)OriginalJoined Mar 5, 2025
Mike Carey (R-OH-15)OriginalJoined Mar 5, 2025
Mike Kelly (R-PA-16)OriginalJoined Mar 5, 2025
Nathaniel Moran (R-TX-1)OriginalJoined Mar 5, 2025
Nicole Malliotakis (R-NY-11)OriginalJoined Mar 5, 2025
Randy Feenstra (R-IA-4)OriginalJoined Mar 5, 2025
Ron Estes (R-KS-4)OriginalJoined Mar 5, 2025
Rudy Yakym (R-IN-2)OriginalJoined Mar 5, 2025
Vern Buchanan (R-FL-16)OriginalJoined Mar 5, 2025
W. Steube (R-FL-17)OriginalJoined Mar 5, 2025
Diana Harshbarger (R-TN-1)Joined Apr 7, 2025
Monica De La Cruz (R-TX-15)Joined Apr 29, 2025
Gus Bilirakis (R-FL-12)Joined May 1, 2025
Neal Dunn (R-FL-2)Joined May 5, 2025
Brandon Gill (R-TX-26)Joined May 6, 2025
John McGuire (R-VA-5)Joined May 8, 2025
Mike Bost (R-IL-12)Joined May 14, 2025
Amendments0
No amendments offered
Cost estimates and reports0
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Titles2
Short titles
Saving Gig Economy Taxpayers ActShort Title(s) as Introduced
Official titles
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.Official Title as Introduced