United States of America: President signed Budget reconciliation Bill 2025 (One Big Beautiful Bill Act/HR 1) including amendments to section 70432 restoring reporting thresholds for third party payment networks

On 4 July 2025, the President signed the Budget Reconciliation Bill 2025/One Big Beautiful Bill Act. The Act repeals 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 required to report payments made to participating payees under subsection (a) only 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 both the monetary and numerical thresholds are met. The amendments are to be applied as if originally included in ARPA section 9674 and take effect for calendar years beginning after 31 December 2024.