Tax insight

House-passed “One Big Beautiful Bill” includes significant information reporting provisions

Insight
10 minute read
May 29, 2025

What happened?

The House on May 22 voted 215 to 214 to pass H.R. 1, the “One Big Beautiful Bill Act” (the bill), including proposed tax law changes, increased funding for border security and national defense, and spending reductions affecting a large number of federal programs. The bill also includes a provision to increase the federal statutory debt limit by $4 trillion.

The bill, as passed by the House, reflects a “manager’s amendment” adopted by the House Rules Committee that modified a number of provisions that had been reported by the Ways and Means Committee and other House committees. The bill contains several information reporting and withholding provisions related to payments to non-employees, including reporting requirements in connection with the provision providing for no tax on qualified tips, the repeal of a previous revision to the de minimis rules for third-party network transactions, the increase in the threshold for information reporting with respect to certain payments (service fees, rent, etc.), the deduction for specified car loan interest, the new Section 4475 remittance excise tax, and the information reporting and withholding requirements relating to new Section 899.

All of these provisions will either require the use of a new information return or modifications to existing forms. These provisions (except the general increase in the reporting threshold) are effective January 1, 2025.

Why is it relevant?

House passage of H.R. 1 clears the way for Senate action on the bill in June, after Congress returns from a Memorial Day recess. The bill is being considered under reconciliation instructions provided in the fiscal year 2025 budget resolution approved in April by Congress that will allow the legislation to be approved by Republicans in the Senate with a simple majority vote, instead of the 60-vote majority usually required. Congressional leaders have set a goal of sending a final bill to be signed by President Trump before Congress begins a July 4 recess, but the House and Senate will need to agree on a final identical version of the bill that can be approved by both chambers. Agreeing on a final bill could delay final passage of the legislation until later in July, before Congress begins its traditional August recess.

Action to consider

Businesses that may be affected by these information reporting and withholding provisions will need to quickly evaluate the potential effect of proposed tax law changes in the bill, as passed by the House, and consider whether to pursue opportunities to influence the legislation as it advances in the Senate.