To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70432, Sec. 70432.
Written by .
The same floor applies to backup withholding
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70432 in the PDF
What the document says
“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--”
The section adds a new paragraph (8) to section 3406(b) of the Internal Revenue Code of 1986 so that a payment settling a third party network transaction counts as a reportable payment only where the number of transactions with the payee in the calendar year exceeds the number in section 6050W(e)(2) and the amount exceeds the dollar amount in section 6050W(e)(1) at the time of payment. That rule does not apply where one or more such payments to the payee in the preceding calendar year were reportable payments.
What the document actually says
“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--”
That sentence, in plain words
A payment from a platform counts as reportable only in some cases. The two tests that follow say when.
What this is about
The tests match the reporting floor above. If last year's payments were reportable, this rule does not apply. Then withholding follows the normal path.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Provide for reconciliation pursuant to title II of H. Con. Res. 14, Public Law 119-21, sec. 70432, 139 Stat. 243 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
This page
“The same floor applies to backup withholding,” Provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70432, Sec. 70432. Read the Mandate, https://readthemandate.org/pl-119-21/proposal/sec70432-backup-withholding/ (retrieved August 26, 2026).
Cite the document when the claim is about what the document says. Cite this page when the indexing, the wording or the record of what has happened is what is being relied on.
How to Read This Page
The quotation is the document's own words, exactly as printed, and we check the page
number against the Act itself before publishing. The paragraph underneath is our summary,
not the document's words. So is the plain English version, which is why it sits beside the
quotation rather than replacing it.
