Cut Red Tape for Online Sales Act

Senate Bill 3840 - Cut Red Tape for Online Sales Act: Overview, Status, and Impact

Hozzl · 2022-12-29T22:33:31Z

Explore the details of Senate Bill 3840 Cut Red Tape for Online Sales Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Taxation. Stay informed on legislative developments.

12/29/2022, 10:33 PM

Congressional Summary of S 3840

Cut Red Tape For Online Sales 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 $5,000 or more. 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.

The bill also requires entities that report income to to issue a plain-language description of the taxability of income reported on Form 1099-K.

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Current Status of Bill S 3840

Bill S 3840 is currently in the status of Bill Introduced since March 15, 2022. Bill S 3840 was introduced during Congress 117 and was introduced to the Senate on March 15, 2022. Bill S 3840's most recent activity was Read twice and referred to the Committee on Finance. as of March 15, 2022

Bipartisan Support of Bill S 3840

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill S 3840

Primary Policy Focus

Taxation

Alternate Title(s) of Bill S 3840

Cut Red Tape for Online Sales Act

A bill to amend the Internal Revenue Code of 1986 to increase the threshold for the de minimis exception for information reporting by third party settlement organizations.