,i  #aahth ,,congress  #ast ,session    
,h4 ,r4 #cecj  ,,in ,,the ,,house ,,of  
,,representatives  ,may #ah1 #bjbc,mr4  
,pappas 7for himself and ,mr4 ,kildee7  
introduced the following bill2 which was
 referred to the ,committee on ,ways and
 ,means  ,a ,,bill  ,to amend the       
,internal ,revenue ,code of #aihf to    
increase the de minimis exception for   
third party settlement organizations to 
#e1jjj1 and for other purposes4  #a4    
,short title ,this ,act may be cited as 
the ,cut ,red ,tape ,for ,online ,sales 
,act4  #b4 ,modification of exception   
for reporting of third party network    
transactions  7a7 ,in general ,section  
#fjej,w7e7 of the ,internal ,revenue    
,code of #aihf is amended by striking   
exceed #fjj and inserting equal or      
exceed #e1jjj4  7b7 ,effective date ,the
 amendment made by this section shall   
apply to returns for calendar years     
beginning after ,december #ca1 #bjba4   
#c4 ,plain language notice to payees    
regarding form #ajii-,k  7a7 ,in general

 ,section #fjej,w of the ,internal      
,revenue ,code of #aihf is amended by   
redesignating subsection 7g7 as         
subsection 7h7 and by inserting after   
subsection 7f7 the following3  7g7      
,plain language description required    
,every person required to furnish a     
written statement under subsection 7f7  
shall simultaneously issue to the       
recipient of such statement a plain     
language notice explaining the contents 
of such statement1 either through using 
a ,form or notice issued by the         
,internal ,revenue ,service or by       
providing a written explanation that is 
substantially similar in content to     
plain language on the ,form or notice   
issued by the ,internal ,revenue        
,service4  4  7b7 ,effective date ,the  
amendments made by this section shall   
apply to statements issued in taxable   
years beginning after the date of the   
enactment of this section4  7c7         
,establishment of notice to taxpayers   
with respect to form #ajii-,k  7#a7 ,in 

general ,not later than #ij days after  
the date of the enactment of this       
section1 the ,secretary of the ,treasury
 7or the ,secretary's delegate7 shall   
amend ,form #ajii-,k to include1 in     
plain language1 a notice with respect to
 such ,form which-- 7,a7 directs payees 
to refer to the instructions for such   
,form to determine if a tax return must 
be filed1  7,b7 summarizes rules for    
taxability of income reported on such   
,form1 including as to under what       
circumstances-- 7i7 income reported on  
such ,form may be subject to tax1 and   
7ii7 income from personal items sold at 
a loss or for no gain may not be subject
 to tax1 and  7,c7 provides a reminder  
to participating payees that they may   
qualify for relevant small business     
deductions4  ,such notice shall be      
similar in form to the ,notice to       
,employee included in ,form ,w-#b 7as in
 effect on the date of the enactment of 
this ,act7 and shall also be issued as a
 stand-alone flier4  7#b7 ,regulations  

and guidance ,the ,secretary of the     
,treasury may prescribe such regulations
 or other guidance as may be necessary  
or appropriate to carry out this        
subsection4  #d4 ,application of backup 
witholding with respect to third party  
network transactions  7a7 ,in general   
,section #cdjf7;b7 of the ,internal     
,revenue ,code of #aihf is amended by   
adding at the end the following new     
paragraph3  7#h7 ,other reportable      
payments include payments in settlement 
of third party network transactions only
 where aggregate for calendar year is   
#e1jjj or more ,any payment in          
settlement of a third party network     
transaction required to be shown on a   
return required under section #fjej,w   
which is made during any calendar year  
shall be treated as a reportable payment
 only if-- 7,a7 the aggregate amount of 
such payment and all previous such      
payments made by the third party        
settlement organization to the          
participating payee during such calendar

 year equals or exceeds #e1jjj1 or  7,b7
 the third party settlement organization
 was required under section #fjej,w to  
file a return for the preceding calendar
 year with respect to payments to the   
participating payee4  4  7b7 ,effective 
date ,the amendments made by this       
section shall apply to calendar years   
beginning after ,december #ca1 #bjba4   
7c7 ,transitional rule for #bjbb ,in the
 case of payments made during calendar  
year #bjbb1 section #cdjf7;b77#h77;,a7  
of the ,internal ,revenue ,code of #aihf
 7as added by this section7 shall be    
applied by inserting and the aggregate  
number of third party network           
transactions settled by the third party 
settlement organization with respect to 
the participating payee during such     
calendar year exceeds #bjj before the   
comma at the end4