US SB1375

Reinstates the pre-2021 reporting threshold for third party settlement organizations (like PayPal, Venmo), requiring Form 1099-K filing only when payments to a payee exceed $20,000 AND more than 200 transactions annually

Reverses the American Rescue Plan Act change that lowered the reporting threshold to $600 with no transaction minimum

Applies the same $20,000/200 transaction thresholds to backup withholding requirements for third party network transactions

Creates an exception allowing backup withholding to apply if the payee exceeded the reporting thresholds in the prior calendar year

Takes effect retroactively as if the American Rescue Plan Act threshold reduction never occurred, with backup withholding changes applying to calendar years after December 31, 2024