Repeal of Revision to De Minimis Rules for Third Party Network Transactions
Section 70432 · Sec. 70432 ·
What this chapter is about
This part puts back the old reporting floor for payment platforms. A platform reports only above $20,000 and more than 200 sales. The same floor is carried into backup withholding. The first change is treated as if it had always been there.
The document says “shall”Who acts: third party settlement organizationsHow: statuteSec. 70432 in the PDF
What the document says
“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--”
The section rewrites section 6050W(e) of the Internal Revenue Code of 1986 so that a third party settlement organization must report on a participating payee's third party network transactions only where the amount that would otherwise be reported exceeds $20,000 and the number of those transactions exceeds 200.
What the document actually says
“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--”
That sentence, in plain words
A payment platform must report on a seller only in some cases. The two tests that follow say when.
What this is about
The amount must top $20,000. The number of sales must top 200. Both tests must be met before a report is due.
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.
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.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70432 in the PDF
What the document says
“The amendment made by this subsection shall take effect as if included in section 9674 of the American Rescue Plan Act.”
The section treats the reinstated exception as if it had been included in section 9674 of the American Rescue Plan Act, and applies the backup withholding change to calendar years beginning after December 31, 2024.
What the document actually says
“The amendment made by this subsection shall take effect as if included in section 9674 of the American Rescue Plan Act.”
That sentence, in plain words
The change is treated as if it had been part of a 2021 law. That law is named in the text.
What this is about
So it reaches back rather than starting now. The other change starts with years after 2024. That older law is not indexed here.
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.
Each distinct thing the section does: reinstate the de minimis exception with its two thresholds, apply the same thresholds to backup withholding with the prior year exception, and fix the two effective dates.
Nothing in the section is left out. It has two subsections and each is recorded.
The section works by amending sections 3406(b) and 6050W(e) of the Internal Revenue Code of 1986 and refers to section 9674 of the American Rescue Plan Act, none of which is indexed here.
