H.R. 190 would restore the thresholds for third-party settlement organizations to report certain payments to the Internal Revenue Service (IRS) to amounts in effect before the 2021 enactment of the American Rescue Plan Act (ARPA). Under the bill, reporting would be required for payees receiving $20,000 or more for 200 or more transactions in a year.

Third-party settlement organizations, including payment applications and online marketplaces, can arrange payments between buyers and sellers in commercial transactions. Those organizations report information, including payment totals and payees’ tax identification numbers, to the IRS using Form 1099-K, “Payment Card and Third-Party Network Transactions,” when payees’ total transactions for a year exceed certain thresholds. From 2012 to 2021, reporting was required for payees that received more than $20,000 from 200 or more transactions. In 2021, ARPA reduced the threshold to $600 with no requirement for the number of transactions. In calendar years 2022 and 2023, the IRS permitted third-party settlement organizations to delay implementation of that provision, keeping the $20,000 and 200-transaction threshold.