Bill
Bill > S1375
summary
Introduced
04/09/2025
04/09/2025
In Committee
04/09/2025
04/09/2025
Crossed Over
Passed
Dead
Introduced Session
119th Congress
Bill Summary
an Act, and for other purposes. IN THE SENATE OF THE UNITED STATES APRIL 9, 2025 Mr. HAGERTY 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 reinstate the exception for de minimis payments by third party settlement organizations with respect to returns relating to payments made in settlement of payment card and third party network transactions, as in effect prior to the enactment of the American Rescue Plan Act, and for other purposes.
AI Summary
This bill, known as the SNOOP Act of 2025 (Stop the Nosy Obsession with Online Payments Act), aims to modify reporting requirements for third-party payment platforms like Venmo or PayPal by reinstating a previous threshold for tax reporting. Specifically, the bill would require third-party settlement organizations to only report transactions to the IRS when a participating payee's annual transactions exceed $20,000 and more than 200 individual transactions in a calendar year. This effectively reverts to a pre-American Rescue Plan Act standard, which had a higher reporting threshold that reduced the administrative burden on smaller online payment users. The bill also modifies backup withholding rules to align with these new reporting thresholds, ensuring that payments below the specified limits are not subject to additional tax reporting requirements. By introducing these changes, the legislation seeks to provide more flexibility for individuals and small businesses using online payment platforms, potentially reducing paperwork and simplifying tax compliance for minor transactions.
Committee Categories
Budget and Finance
Sponsors (9)
Bill Hagerty (R)*,
Jim Banks (R),
John Barrasso (R),
Marsha Blackburn (R),
Chuck Grassley (R),
John Hoeven (R),
Cindy Hyde-Smith (R),
Pete Ricketts (R),
Tommy Tuberville (R),
Last Action
Read twice and referred to the Committee on Finance. (on 04/09/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/119th-congress/senate-bill/1375/all-info |
| BillText | https://www.congress.gov/119/bills/s1375/BILLS-119s1375is.pdf |
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