Details of Public Law 117-2, section 9674 , Modification of Exceptions for Reporting of Third Party Network Transactions

This section modifies the information reporting requirement for third party settlement organizations to not require reporting on third party network transactions of participating payees if the amount that would be required to be reported is below $600. Third party settlement organizations were previously not required to report unless reportable transactions exceeded 200 transactions and $20,000 dollars.

Additionally, the section included additional clarification of the phrase "third party network transactions" for purposes of the reporting requirement.

California does not conform to IRC sections requiring information returns to be filed, but instead provides that FTB may require a copy of any information return required to be filed with the Secretary under IRC section 6050W, relating to payments made in settlement of payment card and third party network transactions, at the time and in the form and manner as the FTB may, by forms and instructions, require.

For calendar years beginning after 12/31/2021, any information returns (i.e., Forms 1099-K) filed under IRC section 6050W that are required to be filed for California purposes would include the information as modified by this federal act.