BAD IRS Activities Act

Bill: 118-s-123
Sponsor: full_name: Sen. Scott, Rick [R-FL]
Introduced: 2023-01-26
Policy area: Taxation
Latest action: action_date: 2023-01-30
text: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 8.

Summaries:
action_date: 2023-01-26
action_desc: Introduced in Senate
text: <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>

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

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 . 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. 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).

January 30, 2023 Read the second time and placed on the calendar