House Ways and Means proposal would hurt honest tax filers and reward tax avoidance

  H.R. 3937, which recently passed out of the House Ways and Means Committee on a party-line vote with Republican support, would undermine efforts to narrow the tax gap—the amount of tax that is legally owed but not paid—and would make it harder for honest tax filers to track the income that they need to report on their tax returns. It would do so by reversing changes to third-party settlement organization (TPSO) reporting requirements made by the American Rescue Plan Act of 2021 (ARPA).