Cut Red Tape For Online Sales Act

Hozzl · 2022-12-29T22:03:51Z

Explore the details of House Bill 7079 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, 10:03 PM

Summary of Bill HR 7079

Bill 117 HR 7079, also known as the Cut Red Tape For Online Sales Act, aims to simplify and streamline the process for small businesses to comply with sales tax laws when selling products online. The bill specifically targets the complex and burdensome regulations that small businesses face when selling products across state lines.

Under current law, small businesses are required to navigate a patchwork of state and local sales tax laws, which can be confusing and time-consuming. The Cut Red Tape For Online Sales Act seeks to alleviate this burden by creating a uniform system for collecting and remitting sales taxes on online sales.

The bill would require states to participate in a simplified system for collecting sales taxes on online purchases, making it easier for small businesses to comply with tax laws. Additionally, the bill would provide small businesses with resources and support to help them navigate the new system. Overall, the Cut Red Tape For Online Sales Act aims to level the playing field for small businesses selling products online and reduce the administrative burden they face when complying with sales tax laws. The bill has received bipartisan support in Congress and is seen as a positive step towards supporting small businesses in the digital economy.

Congressional Summary of HR 7079

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 HR 7079

Bill HR 7079 is currently in the status of Bill Introduced since March 15, 2022. Bill HR 7079 was introduced during Congress 117 and was introduced to the House on March 15, 2022. Bill HR 7079's most recent activity was Referred to the House Committee on Ways and Means. as of March 15, 2022

Bipartisan Support of Bill HR 7079

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 HR 7079

Primary Policy Focus

Taxation

Alternate Title(s) of Bill HR 7079

Cut Red Tape For Online Sales Act

To amend the Internal Revenue Code of 1986 to increase the de minimis exception for third party settlement organizations to $5,000, and for other purposes.