Red Tape Reduction Act of 2023

II 118TH CONGRESS 1ST SESSION S. 1725 To amend the Internal Revenue Code of 1986 to modify the exception for de minimis payments by third party settlement organizations. IN THE SENATE OF THE UNITED STATES MAY 18, 2023 Mr. BROWN (for himself and Mr. CASSIDY) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to modify the exception for de minimis payments by third party settlement organizations. 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 ‘‘Red Tape Reduction 4 Act of 2023’’. 5 SEC. 2. MODIFICATION OF EXCEPTION FOR DE MINIMIS 6 PAYMENTS BY THIRD PARTY SETTLEMENT 7 ORGANIZATIONS. 8 (a) IN GENERAL.—Subsection (e) of section 6050W 9 of the Internal Revenue Code of 1986 is amended by strik- 10 VerDate Sep 11 2014 00:06 Jun 03, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1725.IS S1725 dmwilson on DSKJM0X7X2PROD with BILLS 2 •S 1725 IS ing ‘‘any participating payee if’’ and all that follows and 1 inserting ‘‘any participating payee if— 2 ‘‘(1) the amount which would otherwise be re- 3 ported under subsection (a)(2) with respect to such 4 transactions does not exceed $10,000, or 5 ‘‘(2) the aggregate number of such transactions 6 does not exceed 50.’’. 7 (b) EFFECTIVE DATE.—The amendment made by 8 this section shall apply to transactions settled after De- 9 cember 31, 2023. 10 Æ VerDate Sep 11 2014 05:05 Jun 02, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S1725.IS S1725 dmwilson on DSKJM0X7X2PROD with BILLS