SNOOP Act of 2023

Bill: 118-s-26
Sponsor: full_name: Sen. Hagerty, Bill [R-TN]
Introduced: 2023-01-23
Policy area: Taxation
Subjects: Small business

Tax administration and collection, taxpayers

Wages and earnings
Latest action: action_date: 2023-01-23
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2023-01-23
action_desc: Introduced in Senate
text: <p><strong>Stop the Nosy Obsession with Online Payments Act of 2023 or the SNOOP Act of 2023</strong></p> <p>This bill modifies requirements for third party settlement organizations to eliminate their reporting requirement with respect to the transactions of their participating payees unless they have earned more than $20,000 on more than 200 separate transactions in an applicable tax period. A <em>third party settlement organization</em> is the central organization that has the contractual obligation to make payments to participating payees (generally, a merchant or business) in a third party payment network.</p> <p>This reverses a provision in the American Rescue Plan Act of 2021 that lowered the reporting threshold to $600 with no minimum on the number of transactions.</p>

tv_txt: II 118th CONGRESS 1st Session S. 26 IN THE SENATE OF THE UNITED STATES January 23 (legislative day, January 3), 2023 Mr. Hagerty (for himself, Ms. Lummis , Mr. Cruz , Mr. Hoeven , Mr. Cramer , Mr. Kennedy , Mr. Barrasso , Mr. Lankford , and Mr. Braun ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to repeal the amendments made to reporting of third party network transactions by the American Rescue Plan Act of 2021.

1. Short title This Act may be cited as the Stop the Nosy Obsession with Online Payments Act of 2023 or the SNOOP Act of 2023 . 2. Repeal of modification of exceptions for reporting of third party network transactions (a) In general Section 6050W(e) of the Internal Revenue Code of 1986 is amended to read as follows: (e) Exception for de minimis payments by third party settlement organizations A third party settlement organization shall be required to report any information under subsection (a) with respect to third party network transactions of any participating payee only if— (1) the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions exceeds $20,000, and (2) the aggregate number of such transactions exceeds 200. . (b) Conforming amendment Section 6050W(c)(3) of the Internal Revenue Code of 1986 is amended by striking described in subsection (d)(3)(A)(iii) . (c) Effective date (1) In general The amendment made by subsection (a) shall apply to returns for calendar years beginning after December 31, 2021. (2) Clarification The amendment made by subsection (b) shall apply to transactions after the date of the enactment of the American Rescue Plan Act of 2021.