Saving Gig Economy Taxpayers Act

Saving Gig Economy Taxpayers Act

This bill modifies requirements for third party settlement organizations to eliminate their reporting requirement with respect to the transactions of their participating payees unless they have earned more than $20,000 on more than 200 separate transactions in an applicable tax period. A third party settlement organization is the central organization that has the contractual obligation to make payments to participating payees (generally, a merchant or business) in a third party payment network.

This reverses a provision in the American Rescue Plan Act of 2021 that lowered the reporting threshold to $600 with no minimum on the number of transactions.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3425 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 3425

 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 20, 2021

 Mrs. Miller of West Virginia introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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.
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