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139 STAT. 243 PUBLIC LAW 119–21—JULY 4, 2025 SEC. 70432. REPEAL OF REVISION TO DE MINIMIS RULES FOR THIRD PARTY NETWORK TRANSACTIONS. (a) REINSTATEMENT OF EXCEPTION FOR DE MINIMIS PAYMENTS AS IN EFFECT PRIOR TO ENACTMENT OF AMERICAN RESCUE PLAN ACT OF 2021.— (1) IN GENERAL.—Section 6050W(e) is amended to read as follows: ‘‘(e) EXCEPTION FOR DE MINIMIS PAYMENTS BY THIRD PARTY SETTLEMENT ORGANIZATIONS.—A third party settlement organiza- tion shall be required to report any information under subsection (a) with respect to third party network transactions of any partici- pating 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.’’. (2) EFFECTIVE DATE.—The amendment made by this sub- section shall take effect as if included in section 9674 of the American Rescue Plan Act. (b) APPLICATION OF DE MINIMIS RULE FOR THIRD PARTY NET- WORK TRANSACTIONS TO BACKUP WITHHOLDING.— (1) IN GENERAL.—Section 3406(b) is amended by adding at the end the following new paragraph: ‘‘(8) OTHER REPORTABLE PAYMENTS INCLUDE PAYMENTS IN SETTLEMENT OF THIRD PARTY NETWORK TRANSACTIONS ONLY WHERE AGGREGATE TRANSACTIONS EXCEED REPORTING THRESHOLD FOR THE CALENDAR YEAR.— ‘‘(A) IN GENERAL.—Any payment in settlement of a third party network transaction required to be shown on a return required under section 6050W which is made during any calendar year shall be treated as a reportable payment only if— ‘‘(i) the aggregate number of transactions with respect to the participating payee during such calendar year exceeds the number of transactions specified in section 6050W(e)(2), and ‘‘(ii) the aggregate amount of transactions with respect to the participating payee during such calendar year exceeds the dollar amount specified in section 6050W(e)(1) at the time of such payment. ‘‘(B) EXCEPTION IF THIRD PARTY NETWORK TRANS- ACTIONS MADE IN PRIOR YEAR WERE REPORTABLE.—Subpara- graph (A) shall not apply with respect to payments to any participating payee during any calendar year if one or more payments in settlement of third party network transactions made by the payor to the participating payee during the preceding calendar year were reportable pay- ments.’’. (2) EFFECTIVE DATE.—The amendment made by this sub- section shall apply to calendar years beginning after December 31, 2024. SEC. 70433. INCREASE IN THRESHOLD FOR REQUIRING INFORMATION REPORTING WITH RESPECT TO CERTAIN PAYEES. (a) IN GENERAL.—Section 6041(a) is amended by striking ‘‘$600’’ and inserting ‘‘$2,000’’. 26 USC 3406 note. 26 USC 6050W note. Reports.