US SB1425

Raises the Form 1099-K reporting threshold for third party settlement organizations (like PayPal, Venmo, eBay) from the current $600 to $10,000 in annual payments AND more than 50 transactions, reinstating thresholds similar to pre-American Rescue Plan Act levels.

Applies the same de minimis thresholds to backup withholding requirements, so payment platforms are not required to withhold taxes unless a payee exceeds both the $10,000 and 50-transaction thresholds.

Creates an exception for payees who had reportable transactions in the prior calendar year—they remain subject to backup withholding regardless of current-year thresholds.

Takes effect for transactions settled after December 31, 2024.

Introduced April 10, 2025 by Senator Cassidy (R-LA) with Senator Hassan (D-NH) as a bipartisan cosponsor; referred to the Senate Finance Committee.