Section 1 Short title
This Act may be cited as the “Red Tape Reduction Act of 2023”.
Red Tape Reduction Act of 2023
A BILL
To amend the Internal Revenue Code of 1986 to modify the exception for de minimis payments by third party settlement organizations.
Sec. 2 Modification of exception for de minimis payments by third party settlement organizations
In general— Subsection (e) of section 6050W of the Internal Revenue Code of 1986 is amended by striking “any participating payee if” and all that follows and inserting “any participating payee if—
“(1) the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions does not exceed $10,000, or
“(2) the aggregate number of such transactions does not exceed 50.”
Effective date— The amendment made by this section shall apply to transactions settled after December 31, 2023.