S.1425

Red Tape Reduction Act of 2025 modifies de minimis payments for third party settlement organizations.

The Red Tape Reduction Act of 2025 amends the Internal Revenue Code to reinstate the exception for de minimis payments by third party settlement organizations. Specifically, it modifies Section 6050W(e) to require reporting only if the aggregate amount of transactions exceeds $10,000 or the number of transactions exceeds 50. Additionally, it introduces an exception if transactions in the prior year were reportable. These changes apply to transactions settled after December 31, 2024.