Businesses and individuals who pay contractors for natural disaster repair or mitigation work would face a higher IRS reporting threshold under this bill. Currently, anyone who pays $600 or more to a contractor for work done in the course of trade or business must file a 1099 form reporting that payment to the IRS. This bill raises that threshold to $5,000, but only for payments tied to repairing property damage from natural disasters or extreme weather, or for work done to reduce future disaster risk to real property. Homeowners, landlords, and businesses that hire contractors after storms, floods, wildfires, or other disasters would see less IRS paperwork generated on those transactions. The change applies to payments made after the bill becomes law.
Transparency & Accountability
- 1099 information-reporting threshold — Raised from $600 to $5,000 for natural-disaster repair and mitigation payments, reducing IRS visibility into these transactions
Congressional Summary
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.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-02-06
- Date Added
- 2026-07-07
- Source
- Congress.gov →
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