Red Tape Reduction Act of 2023

This bill modifies IRS reporting rules for third-party payment processors (like payment apps or platforms). It raises the threshold for reporting small transactions by changing the "de minimis" exception: processors no longer need to report transactions under $10,000 per payee or fewer than 50 total transactions annually. The change directly affects payment processors handling numerous small transactions, reducing their reporting burden. The new rules apply to transactions settled after December 31, 2023.