BAD IRS Activities Act

Subjects: Taxation

Summary:  <p> <strong>Blocking the Adverse and Dramatic Increased Reliance on Surveillance Activities Act or the BAD IRS Activities Act </strong></p> <p>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 more than $20,000 on more than 200 separate transactions in an applicable tax period. A <em>third party settlement organization</em> 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. </p> <p>This reverses a provision in the American Rescue Plan Act of 2021 that lowered the reporting threshold to $600 with no minimum on the number of transactions.</p> <p>The bill rescinds unobligated funds for Internal Revenue Service enforcement activities and operations support.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 123 Placed on Calendar Senate (PCS)]

&lt;DOC&gt;





                                                         Calendar No. 8
118th CONGRESS
  1st Session
                                 S. 123

 To protect American small businesses, gig workers, and freelancers by 
repealing the burdensome American Rescue Plan Act of 2021 transactions 
  reporting threshold, and to rescind certain funding provided to the 
  Internal Revenue Service under section 10301 of Public Law 117-169.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 26, 2023

    Mr. Scott of Florida (for himself, Mr. Budd, Mr. Braun, and Mr. 
 Johnson) introduced the following bill; which was read the first time

                            January 30, 2023

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To protect American small businesses, gig workers, and freelancers by 
repealing the burdensome American Rescue Plan Act of 2021 transactions 
  reporting threshold, and to rescind certain funding provided to the 
  Internal Revenue Service under section 10301 of Public Law 117-169.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Blocking the Adverse and Dramatic 
Increased Reliance on Surveillance Activities Act'' or the ``BAD IRS 
Activities Act''.

SEC. 2. REPEAL OF MODIFICATIONS OF EXCEPTIONS FOR REPORTING OF THIRD 
              PARTY NETWORK TRANSACTIONS.

    (a) In General.--Section 6050W(e) of the Internal Revenue Code of 
1986 is amended to read as follows:
    ``(e) Exception for De Minimis Payments by Third Party Settlement 
Organizations.--A third party settlement organization shall be required 
to report any information under subsection (a) with respect to third 
party network transactions of any participating payee only if--
            ``(1) the amount which would otherwise be reported under 
        subsection (a)(2) with respect to such transactions exceeds 
        $20,000, and
            ``(2) the aggregate number of such transactions exceeds 
        200.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to returns for calendar years beginning after December 31, 2021.

SEC. 3. RESCISSION OF CERTAIN FUNDS FOR ENHANCED INTERNAL REVENUE 
              SERVICE RESOURCES.

    Effective on the date of enactment of this Act, the unobligated 
balances of the amounts made available under the following provisions 
of Public Law 117-169 are rescinded:
            (1) Internal revenue service enforcement funds.--Section 
        10301(1)(A)(ii).
            (2) Internal revenue service operations support.--Section 
        10301(1)(A)(iii).
                                                         Calendar No. 8

118th CONGRESS

  1st Session

                                 S. 123

_______________________________________________________________________

                                 A BILL

 To protect American small businesses, gig workers, and freelancers by 
repealing the burdensome American Rescue Plan Act of 2021 transactions 
  reporting threshold, and to rescind certain funding provided to the 
  Internal Revenue Service under section 10301 of Public Law 117-169.

_______________________________________________________________________

                            January 30, 2023

            Read the second time and placed on the calendar
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