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S. 3840 117th Congress Senate

Cut Red Tape for Online Sales Act

Official title: A bill to amend the Internal Revenue Code of 1986 to increase the threshold for the de minimis exception for information reporting by third party settlement organizations.

Introduced: March 15, 2022 Introduced by: Margaret Wood Hassan Democratic · New Hampshire See on congress.gov
Taxation
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This bill died when the 117th Congress ended
It never became law before the 117th Congress (2021–2022) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Mar 15, 2022
Read twice and referred to the Committee on Finance.
Mar 15, 2022
Introduced in Senate
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 Latest action March 15, 2022

Read twice and referred to the Committee on Finance.

 Plain-English summary Congressional Research Service

Cut Red Tape For Online Sales Act

This bill modifies requirements for third party settlement organizations to eliminate their reporting requirement with respect to the transactions of their participating payees unless they have earned $5,000 or more. A third party settlement organization is the central organization that has the contractual obligation to make payments to participating payees (generally, a merchant or business) in a third party payment network.

The bill also requires entities that report income to to issue a plain-language description of the taxability of income reported on Form 1099-K.

 Related & companion bills 1
  • HR 7079 Cut Red Tape For Online Sales Act
 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Lobbying activity 2

Registered lobbyists who named this bill in their disclosure filings. Source: federal Lobbying Disclosure Act filings.

Bodies those filers lobbied

A filing lists the bills it worked on and the parts of government it contacted in separate sections, so these are the bodies those filers named anywhere in the filing, not a per-bill breakdown.

 Cosponsors 5
All 5 Democratic 4
D
Merkley, Jeff
Oregon · Nov 30, 2022
 D
Padilla, Alex
California · Nov 17, 2022
 D
Coons, Christopher A.
Delaware · May 25, 2022
 D
Hickenlooper, John W.
Colorado · May 11, 2022
Sinema, Kyrsten
· Mar 15, 2022
Cite this page click to expand
APA
U.S. Congress. (2026). S. 3840: Cut Red Tape for Online Sales Act. 117th Congress. Open America. https://openamerica.io/bill/117-S-3840/
MLA
"S. 3840: Cut Red Tape for Online Sales Act." 117th Congress, 2026, Open America, https://openamerica.io/bill/117-S-3840/.
Bluebook (legal)
S. 3840, 117th Cong. (2026), https://openamerica.io/bill/117-S-3840/.
Markdown link
[S. 3840: Cut Red Tape for Online Sales Act](https://openamerica.io/bill/117-S-3840/)
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