March 5, 2025
Mrs. Miller of West Virginia (for herself, Mr. Buchanan, Mr. Smith of Nebraska, Mr. Kelly of Pennsylvania, Mr. Schweikert, Mr. LaHood, Mr. Arrington, Mr. Estes, Mr. Smucker, Mr. Hern of Oklahoma, Mr. Murphy, Mr. Kustoff, Mr. Fitzpatrick, Mr. Steube, Ms. Tenney, Mrs. Fischbach, Mr. Moore of Utah, Ms. Van Duyne, Mr. Feenstra, Ms. Malliotakis, Mr. Carey, Mr. Yakym, Mr. Miller of Ohio, Mr. Bean of Florida, and Mr. Moran) introduced the following bill; which was referred to the Committee on Ways and Means
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.
Section 1. Short title
This Act may be cited as the Saving Gig Economy Taxpayers Act
.
Sec. 2. Reinstatement of exception for de minimis payments as in effect prior to enactment of American Rescue Plan Act
(a) In general
Section 6050W(e) of the Internal Revenue Code of 1986 is amended to read as follows:
(e) Exception for de minimis payments by third party settlement organizations
A third party settlement organization shall be required to report any information under subsection (a) with respect to third party network transactions of any participating payee only if—
(1)
the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions exceeds $20,000, and
(2)
the aggregate number of such transactions exceeds 200.
(b) Effective date
The amendment made by this section shall take effect as if included in section 9674 of the American Rescue Plan Act.
Sec. 3. Application of de minimis rule for third party network transactions to backup withholding
(a) In general
Section 3406(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
(8) Other reportable payments include payments in settlement of third party network transactions only where aggregate transactions exceed reporting threshold for the calendar year
(A) In general
Any payment in settlement of a third party network transaction required to be shown on a return required under section 6050W which is made during any calendar year shall be treated as a reportable payment only if—
(i)
the aggregate number of transactions with respect to the participating payee during such calendar year exceeds the number of transactions specified in section 6050W(e)(2), and
(ii)
the aggregate amount of transactions with respect to the participating payee during such calendar year exceeds the dollar amount specified in section 6050W(e)(1) at the time of such payment.
(B) Exception if third party network transactions made in prior year were reportable
Subparagraph (A) shall not apply with respect to payments to any participating payee during any calendar year if one or more payments in settlement of third party network transactions made by the payor to the participating payee during the preceding calendar year were reportable payments.
(b) Effective date
The amendments made by this section shall apply to calendar years beginning after December 31, 2024.