Federal

Saving Gig Economy Taxpayers Act

Source: Congress.gov · 711 words in original text

What This Bill Does

This bill changes the tax reporting rules for third party settlement organizations (companies that process payments through credit cards and payment networks). It brings back an earlier exception that allows these organizations to skip reporting certain small payment transactions to the government.

Who It Affects

Third party settlement organizations that process payment card and third party network transactions. Participating payees (people or businesses that receive payments through these organizations).

Key Provisions

* Third party settlement organizations do not have to report payment information if the total amount of transactions is $20,000 or less. (Sec. 2(a)) * Third party settlement organizations do not have to report payment information if the number of transactions is 200 or fewer. (Sec. 2(a)) * Both conditions must be met: the amount must be $20,000 or less AND there must be 200 or fewer transactions for the reporting exception to apply. (Sec. 2(a))

What Changes

Third party settlement organizations will be required to report fewer transactions to tax authorities than they currently do. These organizations will only have to report payment information when transactions exceed both $20,000 and 200 transactions in a calendar year.

Important Definitions

The bill does not explicitly define "third party settlement organization," "participating payee," or "third party network transactions."

Effective Date

The changes apply to tax returns for calendar years beginning after December 31, 2021. (Sec. 2(b))

IB Union Calendar No. 696 118TH CONGRESS 2D SESSION H. R. 190 [Report No. 118–857] 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. IN THE HOUSE OF REPRESENTATIVES JANUARY 9, 2023 Mrs. MILLER of West Virginia (for herself, Mr. BUCHANAN, Mr. FERGUSON, Mr. ESTES, Mr. KELLY of Pennsylvania, Mr. ARRINGTON, Mr. SCHWEIKERT, Mr. MURPHY, Mr. KUSTOFF, Mr. SMUCKER, Mr. SMITH of Nebraska, Mr. WENSTRUP, Mr. LAHOOD, and Mr. HERN) introduced the following bill; which was referred to the Committee on Ways and Means DECEMBER 10, 2024 Additional sponsors: Ms. MALLIOTAKIS, Ms. VAN DUYNE, Mr. STEWART, Ms. TENNEY, Mr. MOORE of Utah, Mr. FITZPATRICK, Mr. STEUBE, Mr. FEENSTRA, Mr. MOOLENAAR, Mr. CAREY, Mrs. FISCHBACH, Mrs. STEEL, Mr. NORMAN, Mr. DUNCAN, Mr. PERRY, Mr. MCCLINTOCK, Mr. SANTOS, Mr. FINSTAD, Mr. VALADAO, Mr. CLINE, Mrs. MILLER-MEEKS, Ms. LEE of Florida, Mrs. BICE, Mr. WILLIAMS of New York, Mrs. HARSHBARGER, Mr. MORAN, Mr. EZELL, Mr. YAKYM, Mr. BIGGS, Mrs. CAMMACK, Mr. MOONEY, Mr. LALOTA, Mr. CALVERT, Mr. GALLAGHER, and Mr. POSEY DECEMBER 10, 2024 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on January 9, 2023] VerDate Sep 11 2014 02:11 Dec 11, 2024 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H190.RH H190 kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 •HR 190 RH A BILL To amend the Internal Revenue Code of 1986 to reinstate the exception for de minimis payments by third party settlement organizations with respect to returns relating to payments made in settlement of payment card and third party network transactions, as in effect prior to the enactment of the American Rescue Plan Act. VerDate Sep 11 2014 02:11 Dec 11, 2024 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H190.RH H190 kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 •HR 190 RH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Saving Gig Economy 4 Taxpayers Act’’. 5 SEC. 2. REINSTATEMENT OF EXCEPTION FOR DE MINIMIS 6 PAYMENTS AS IN EFFECT PRIOR TO ENACT- 7 MENT OF AMERICAN RESCUE PLAN ACT. 8 (a) IN GENERAL.—Section 6050W(e) of the Internal 9 Revenue Code of 1986 is amended to read as follows: 10 ‘‘(e) EXCEPTION FOR DE MINIMIS PAYMENTS BY 11 THIRD PARTY SETTLEMENT ORGANIZATIONS.—A third 12 party settlement organization shall be required to report 13 any information under subsection (a) with respect to third 14 party network transactions of any participating payee only 15 if— 16 ‘‘(1) the amount which would otherwise be re- 17 ported under subsection (a)(2) with respect to such 18 transactions exceeds $20,000, and 19 ‘‘(2) the aggregate number of such transactions 20 exceeds 200.’’. 21 (b) EFFECTIVE DATE.—The amendment made by this 22 section shall apply to returns for calendar years beginning 23 after December 31, 2021. 24 VerDate Sep 11 2014 02:11 Dec 11, 2024 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H190.RH H190 kjohnson on DSK7ZCZBW3PROD with $$_JOB Union Calendar No. 696 118TH CONGRESS 2D SESSION H. R. 190 [Report No. 118–857] A BILL To amend the Internal Revenue Code of 1986 to reinstate the exception for de minimis payments by third party settlement organizations with re- spect to returns relating to payments made in settlement of payment card and third party net- work transactions, as in effect prior to the enact- ment of the American Rescue Plan Act. DECEMBER 10, 2024 Reported with an amendment, committed to the Com- mittee of the Whole House on the State of the Union, and ordered to be printed VerDate Sep 11 2014 02:11 Dec 11, 2024 Jkt 059200 PO 00000 Frm 00004 Fmt 6651 Sfmt 6651 E:\BILLS\H190.RH H190 kjohnson on DSK7ZCZBW3PROD with $$_JOB

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