Third-party settlement organizations; reporting of payments.

Reporting of payments by third-party settlementorganizations. Requires third-party settlement organizations (TPSOs) to report to the Tax Department the gross amount of paymentsmade to any participating payee, a person who receives payment froma TPSO. Generally speaking, a TPSO is a company that provides a platformfor buyers and sellers to transact goods or services and settlestransactions between those parties. Examples include marketplacefacilitators and "gig economy" platforms. Under federal law, paymentsby TPSOs to participating payees need not be reported unless theyexceed $20,000 and there are more than 200 transactions between theTPSO and the participating payee. The bill instead requires use ofthe standard 1099 reporting threshold for non-TPSO income, $600,as the level at which TPSO income must be reported to the Tax Department.The requirements of the bill apply only to payments to participatingpayees with a Virginia address.