Legal Alert: House tax bill proposes changes to information reporting rules
On May 14, 2025, the House Ways and Means Committee approved the “One, Big, Beautiful Bill,” containing the tax provisions destined for the budget reconciliation package. Several of the bill’s provisions would affect information reporting and withholding requirements.
As expected, the bill would reinstate the de minimis threshold for Form 1099-K reporting by third party settlement organizations to the $20,000 and 200 transaction levels that existed prior to the 2021 amendments to section 6050W. Consistent with H.R. 7024, as passed by the House in 2024, the information reporting threshold for payments reportable under sections 6041 and 6041A, would increase, from the current $600 to $2,000, which would be indexed for inflation.
In addition, several new information reporting requirements would be added to support substantive provisions in the bill such as no tax on tips, overtime, or car loan interest, and the proposed excise tax on remittance transfers.
Read the full legal alert here.