(e) REPORTING.— 
(1) INFORMATION AT SOURCE.—Section 6041 
of the Internal Revenue Code of 1986 is amended— 
(A) in subsection (a)— 
(i) in the heading, by striking ‘‘$600’’ 
and inserting ‘‘$1,000’’; and 
(ii) by striking ‘‘$600 or more in any 
taxable year’’ and inserting ‘‘$1,000 or 
more in any taxable year’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(h) SPECIAL RULES FOR CERTAIN PERSONS CLAS-
SIFIED AS NOT EMPLOYEES.— 
‘‘(1) IN GENERAL.—In the case of any service 
recipient or payor required to make a return under 
subsection (a) with respect to compensation to which 
section 7706(a) applies— 
‘‘(A) such return shall include— 
‘‘(i) the aggregate amount of such 
compensation paid to each person whose 
name is required to be included on such re-
turn, 
‘‘(ii) the aggregate amount deducted 
and withheld under section 3402(s) with 
respect to such compensation, and 
VerDate Sep 11 2014 
21:42 Mar 22, 2019
Jkt 089200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H1625.IH
H1625
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(iii) an indication of whether a copy 
of the contract described in section 
7706(d) is on file with the service recipient 
or payor, and 
‘‘(B) the statement required to be fur-
nished under subsection (d) shall include the in-
formation described in subparagraph (A) with 
respect to the service provider to whom such 
statement is furnished. 
‘‘(2) DEFINITIONS.—Terms used in this sub-
section which are also used in section 7706 shall 
have the same meaning as when used in such sec-
tion.’’. 
(2) RETURNS REGARDING PAYMENTS OF REMU-
NERATION FOR SERVICES AND DIRECT SALES.—Sec-
tion 6041A of such Code is amended— 
(A) in paragraph (2) of subsection (a), by 
striking ‘‘$600’’ and inserting ‘‘$1,000’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(g) SPECIAL RULES FOR CERTAIN PERSONS CLAS-
SIFIED AS NOT EMPLOYEES.—Rules similar to the rules 
of subsection (h) of section 6041 shall apply for purposes 
of this section.’’. 
VerDate Sep 11 2014 
21:42 Mar 22, 2019
Jkt 089200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H1625.IH
H1625
pamtmann on DSKBFK8HB2PROD with BILLS
(3) RETURNS RELATING TO PAYMENTS MADE 
IN
SETTLEMENT
OF
PAYMENT
CARD
AND
THIRD 
PARTY
NETWORK
TRANSACTIONS.—Section 6050W 
of such Code is amended— 
(A) in subsection (d), by amending para-
graph (3) to read as follows: 
‘‘(3) THIRD PARTY PAYMENT NETWORK.— 
‘‘(A) IN GENERAL.—The term ‘third party 
payment network’ means any agreement or ar-
rangement— 
‘‘(i) which involves the establishment 
of accounts with a central organization or 
marketplace platform by a substantial 
number of persons who— 
‘‘(I) are unrelated to such organi-
zation or platform, 
‘‘(II) provide goods or services, 
and 
‘‘(III) have agreed to settle 
transactions for the provision of such 
goods or services pursuant to such 
agreement or arrangement, 
‘‘(ii) which provides for standards and 
mechanisms for settling such transactions, 
and 
VerDate Sep 11 2014 
21:42 Mar 22, 2019
Jkt 089200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H1625.IH
H1625
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(iii) which guarantees persons pro-
viding goods or services pursuant to such 
agreement or arrangement that such per-
sons will be paid for providing such goods 
or services. 
‘‘(B) EXCEPTION.—The term ‘third party 
payment network’ shall not include any agree-
ment or arrangement which provides for the 
issuance of payment cards. 
‘‘(C) MARKETPLACE PLATFORM.—For pur-
poses of subparagraph (A), the term ‘market-
place platform’ means any person who— 
‘‘(i) operates a digital website, mobile 
application, or similar system that facili-
tates the provision of goods or services by 
providers to recipients, 
‘‘(ii) enters into an agreement with 
each provider stating that such provider 
will not be treated as an employee with re-
spect to such goods or services, 
‘‘(iii) provides standards and mecha-
nisms for settling such facilitated trans-
actions, and 
‘‘(iv) guarantees each provider of 
goods or services pursuant to such agree-
VerDate Sep 11 2014 
21:42 Mar 22, 2019
Jkt 089200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H1625.IH
H1625
pamtmann on DSKBFK8HB2PROD with BILLS
ment that the provider will be paid for 
such facilitated transaction.’’; 
(B) by amending subsection (e) to read as 
follows: 
‘‘(e) EXCEPTION FOR DE MINIMIS PAYMENTS BY 
THIRD PARTY SETTLEMENT ORGANIZATIONS.— 
‘‘(1) IN GENERAL.—A third party settlement 
organization shall be required to report any informa-
tion under subsection (a) with respect to third party 
network transactions of any participating payee only 
if the amount which would otherwise be reported 
under subsection (a)(2) with respect to such trans-
actions exceeds $1,000. 
‘‘(2) EXCEPTION.— 
‘‘(A) MARKETPLACE PLATFORMS.—In the 
case of a third party settlement organization 
which is a marketplace platform (as defined in 
subsection (d)(3)(C)) through which substan-
tially all the participating payees are primarily 
engaged in the sale of goods, such marketplace 
platform shall be required to report any infor-
mation under subsection (a) with respect to 
third party network transactions of such payee 
only if— 
VerDate Sep 11 2014 
21:42 Mar 22, 2019
Jkt 089200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H1625.IH
H1625
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(i) the amount which would other-
wise be reported under subsection (a)(2) 
with respect to such transaction exceeds 
$5,000, or 
‘‘(ii) the aggregate number of trans-
actions exceeds 50. 
‘‘(B) OTHER THIRD PARTY SETTLEMENT 
ORGANIZATIONS.—In the case of a third party 
settlement organization other than a market-
place platform— 
‘‘(i) the rules of subparagraph (A) 
shall apply in the case of information re-
quired to be reported, or which would oth-
erwise be reported, under subsection (a) to 
any participating payee who is primarily 
engaged in the sale of goods, and 
‘‘(ii) the determination of whether a 
participating payee is primarily engaged in 
the sale of goods may be made separately 
for each participating payee. 
‘‘(3) ELECTION TO REPORT.—Notwithstanding 
paragraphs (1) and (2), a third party settlement or-
ganization may elect to report any information 
under subsection (a) with respect to third party net-
work transactions of any participating payee without 
VerDate Sep 11 2014 
21:42 Mar 22, 2019
Jkt 089200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H1625.IH
H1625
pamtmann on DSKBFK8HB2PROD with BILLS