Official Summaries

Natural Disaster Property Protection Act of 2025

This bill increases to $5,000 (from $600) the dollar threshold at which a person engaged in a trade or business is required to file an information return (for federal tax purposes) reporting certain payments related to a natural disaster or extreme weather.

Under current law, a person engaged in a trade or business (including a corporation, company, partnership, association, individual, estate, and trust) is required to file an information return for certain payments made during the tax year to another person (but generally not to a corporation) if such payments total (in the aggregate) $600 or more (information reporting threshold). Such payments are reported on the IRS Form 1099 series. Specifically, payments made to nonemployees in exchange for services are reported on IRS Form 1099-NEC (nonemployee compensation). (Some exceptions apply.)

Under the bill, the information reporting threshold increases to $5,000 for (1) expenses incurred to mitigate the risk of damage to real property that may result from a natural disaster or extreme weather, and (2) expenses incurred to repair damage to real property caused by a natural disaster or extreme weather.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1093 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 1093

   To amend the Internal Revenue Code of 1986 to increase the dollar 
threshold applicable to information reporting with respect to payments 
                for qualified natural disaster expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 6, 2025

 Ms. Pettersen (for herself and Mr. LaMalfa) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to increase the dollar 
threshold applicable to information reporting with respect to payments 
                for qualified natural disaster expenses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Natural Disaster Property Protection 
Act of 2025''.

SEC. 2. INCREASE IN THRESHOLD REQUIRING INFORMATION REPORTING TO 
              RESPECT TO QUALIFIED NATURAL DISASTER EXPENSES.

    (a) Returns Regarding Payment in Course of Trade or Business.--
Section 6041 of the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subsection:
    ``(h) Increased Threshold for Qualified Natural Disaster 
Expenses.--
            ``(1) In general.--In the case of a payment for a qualified 
        natural disaster expense, subsection (a) shall be applied by 
        substituting `$5,000' for `$600'.
            ``(2) Qualified natural disaster expense.--For purposes of 
        this subsection, the term `qualified natural disaster expense' 
        means--
                    ``(A) an expense incurred to mitigate the risk 
                posed to real property by natural disasters or extreme 
                weather, or
                    ``(B) an expense incurred to repair damage done to 
                real property by natural disasters or extreme 
                weather.''.
    (b) Returns Regarding Payments of Remuneration for Services.--
Section 6041A of such Code is amended by adding at the end the 
following new subsection:
    ``(g) Increased Threshold for Qualified Natural Disaster 
Expenses.--In the case of a payment for a qualified natural disaster 
expense (as defined in section 6041(h)(2)), subsection (a)(2) shall be 
applied by substituting `$5,000' for `$600'.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this section.
                                 <all>