1. Short title This Act may be cited as the Cut Red Tape For Online Sales Act . 2. Modification of exception for reporting of third party network transactions (a) In general Section 6050W(e) of the Internal Revenue Code of 1986 is amended by striking exceed $600 and inserting equal or exceed $5,000 . (b) Effective date The amendment made by this section shall apply to returns for calendar years beginning after December 31, 2021. 3. Plain language notice to payees regarding form 1099–K (a) In general Section 6050W of the Internal Revenue Code of 1986 is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following: (g) Plain language description required Every person required to furnish a written statement under subsection (f) shall simultaneously issue to the recipient of such statement a plain language notice explaining the contents of such statement, either through using a Form or notice issued by the Internal Revenue Service or by providing a written explanation that is substantially similar in content to plain language on the Form or notice issued by the Internal Revenue Service. . (b) Effective date The amendments made by this section shall apply to statements issued in taxable years beginning after the date of the enactment of this section. (c) Establishment of notice to taxpayers with respect to form 1099–K (1) In general Not later than 90 days after the date of the enactment of this section, the Secretary of the Treasury (or the Secretary’s delegate) shall amend Form 1099–K to include, in plain language, a notice with respect to such Form which— (A) directs payees to refer to the instructions for such Form to determine if a tax return must be filed, (B) summarizes rules for taxability of income reported on such Form, including as to under what circumstances— (i) income reported on such Form may be subject to tax, and (ii) income from personal items sold at a loss or for no gain may not be subject to tax, and (C) provides a reminder to participating payees