United States of America: Budget reconciliation Bill 2025 (One Big Beautiful Bill Act/HR 1) including amendments to section 111104 restoring reporting thresholds for third party payment networks was introduced in House of Representatives

On 20 May 2025, the House of Representatives introduced amendments in section 111104 of H.R.1, titled the budget reconciliation bill 2025/One Big Beautiful Bill Act (H.R.1). The amendments repeal the revision to the de minimis rules for third party network transactions enacted under section 9674 of the American Rescue Plan Act of 2021 (ARPA), thereby restoring the previous thresholds for information reporting by third party settlement organisations under section 6050W(e) of the Internal Revenue Code. Under the reinstated rule, such organisations are only required to report payments made to participating payees under subsection (a) if the aggregate number of transactions exceeds 200 and the gross amount of such transactions exceeds USD 20'000 within a calendar year, effectively reversing the ARPA change which had lowered the reporting threshold to USD 600 with no minimum transaction count. Additionally, section 3406(b)(3) of the Internal Revenue Code was amended to apply backup withholding under subsection (a) only where the requirements of both a monetary and numerical threshold are met. The amendments apply as if included in the original provisions of ARPA section 9674 and are effective for calendar years beginning after 31 December 2024.