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To amend the Internal Revenue Code of 1986 to increase the dollar threshold applicable to information reporting with respect to payments for qualified natural disaster expenses.
2/7/2025, 9:05 AM
Summary of Bill HR 1093
The current threshold for reporting payments for qualified natural disaster expenses is set at $600. This bill proposes to increase that threshold to $1,000, allowing individuals and businesses to spend more money on recovery efforts without having to worry about additional reporting requirements.
By raising the threshold for reporting payments for qualified natural disaster expenses, this bill aims to streamline the process for individuals and businesses seeking to recover from natural disasters. This change would provide much-needed relief to those who have been impacted by natural disasters and help them get back on their feet more quickly. Overall, Bill 119 HR 1093 seeks to make it easier for individuals and businesses to recover from natural disasters by increasing the dollar threshold for information reporting on payments for qualified natural disaster expenses.
Congressional Summary of HR 1093
Natural Disaster Property Protection Act of 2025
This bill increases to $5,000 (from $600) the dollar threshold at which a person engaged in a trade or business is required to file an information return (for federal tax purposes) reporting certain payments related to a natural disaster or extreme weather.
Under current law, a person engaged in a trade or business (including a corporation, company, partnership, association, individual, estate, and trust) is required to file an information return for certain payments made during the tax year to another person (but generally not to a corporation) if such payments total (in the aggregate) $600 or more (information reporting threshold). Such payments are reported on the IRS Form 1099 series. Specifically, payments made to nonemployees in exchange for services are reported on IRS Form 1099-NEC (nonemployee compensation). (Some exceptions apply.)
Under the bill, the information reporting threshold increases to $5,000 for (1) expenses incurred to mitigate the risk of damage to real property that may result from a natural disaster or extreme weather, and (2) expenses incurred to repair damage to real property caused by a natural disaster or extreme weather.
