The "Red Tape Reduction Act of 2025" aims to modify the Internal Revenue Code by reinstating previous, higher reporting thresholds for third-party settlement organizations. Specifically, it amends Section 6050W(e) to require reporting of third-party network transactions only if the aggregate amount exceeds $10,000 or the total number of transactions exceeds 50 , effectively reversing a change made by the American Rescue Plan Act. Furthermore, the bill extends these de minimis reporting rules to apply to backup withholding requirements under Section 3406(b). This means payments in settlement of third-party network transactions will only be subject to backup withholding if they meet both the $10,000 and 50-transaction thresholds. These changes are set to apply to transactions settled and calendar years beginning after December 31, 2024, reducing reporting burdens for many small businesses and individuals.