Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB26

Introduced
1/23/23  

Caption

Stop the Nosy Obsession with Online Payments Act of 2023 or the SNOOP Act of 2023 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 third party settlement organization 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. 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.

Impact

The main implication of SB26 is a return to higher reporting thresholds, where third-party network transaction reports will only be required when a participating payee earns more than $20,000 across over 200 transactions within a tax year. This repeal is expected to ease the compliance burden on small businesses and solo entrepreneurs, who may have been impacted by the stringent reporting requirements introduced by the American Rescue Plan. By rolling back these requirements, the bill also seeks to protect the privacy of individual earners by reducing unnecessary reporting for smaller transactions.

Summary

Senate Bill 26, titled the 'Stop the Nosy Obsession with Online Payments Act of 2023' or the 'SNOOP Act of 2023', proposes modifications to the Internal Revenue Code of 1986 regarding the reporting of third-party network transaction activities. This bill aims to repeal recent changes brought about by the American Rescue Plan Act of 2021, which significantly reduced the reporting threshold for third-party settlement organizations. The previously established threshold required payment reporting for transactions exceeding $600 without a specified number of transactions, which raised concerns among business owners and financial service providers regarding the burdensome requirements for small payments.

Contention

Notably, while proponents of the SNOOP Act advocate for the bill as a means to reduce regulatory overload on small businesses, critics argue that repealing these protections could hinder the government's ability to track potential tax evasion and low-income earners inaccurately reporting income. This has led to a contentious debate over balancing regulatory oversight with the need to facilitate ease of doing business. Some lawmakers express concerns that the rollback might primarily benefit larger platforms at the expense of broader compliance needs, igniting discussions on fairness and accountability in financial reporting.

Companion Bills

US HB488

Identical bill Stop the Nosy Obsession with Online Payments Act of 2023 or the SNOOP Act of 2023 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 third party settlement organization 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. 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.

US HB190

Related bill Saving Gig Economy Taxpayers Act 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 third party settlement organization 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. 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.

US SB123

Related bill BAD IRS Activities Act Blocking the Adverse and Dramatic Increased Reliance on Surveillance Activities Act

Previously Filed As

US HB488

Stop the Nosy Obsession with Online Payments Act of 2023 or the SNOOP Act of 2023 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 third party settlement organization 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. 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.

US HB190

Saving Gig Economy Taxpayers Act 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 third party settlement organization 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. 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.

US SB1375

SNOOP Act of 2025 Stop the Nosy Obsession with Online Payments Act of 2025

US HB108

Small Business Prosperity Act of 2023 This bill modifies the tax deduction for qualified business income to (1) make such deduction permanent, (2) limit to 21% the top tax rate on qualified business income, (3) repeal the limitation on the deduction based on amount of wages paid, and (4) revise the definition of qualified trade or business to mean any trade or business other than the trade of business of performing services as an employee. The bill provides that a change in the organizational structure of a corporation is not a taxable event if there is no change among the owners, their ownership interests, or the assets of the organization, The bill repeals the estate tax after 2022.

US SB17

Sunlight for Unaccountable Non-profits (SUN) Act This bill expands the disclosure requirements for certain tax-exempt organizations. This bill requires the annual tax return information for tax-exempt organizations and deferred compensation plans to be made available to the public at no charge and in an open structured data format that is processable by computers, with the information easy to find, access, reuse, and download in bulk. The bill also requires the disclosure of the names and addresses of contributors of $5,000 or more to tax-exempt organizations that participate or intervene in political campaigns on behalf of, or in opposition to, any candidate for public office.

US SB5172

A bill to amend the National Child Protection Act of 1993 to ensure that businesses and organizations that work with vulnerable populations are able to request background checks for their contractors who work with those populations, as well as for individuals that the businesses or organizations license or certify to provide care for those populations.

US HB370

FinCEN Modernization Act of 2023 This bill requires the Financial Crimes Enforcement Network (FinCEN) to establish programs and perform research related to financial technology on topics such as machine learning, data analytics, and cryptocurrency. The bill allows FinCEN to enter into transactions and to accept gifts related to these objectives.

US SB77

STEP Improvement Act of 2023 This bill reauthorizes through FY2028 the Small Business Administration's (SBA) State Trade Expansion Program, which provides foreign trade assistance to small businesses, and it revises provisions related to the administration of the program. Specifically, the SBA must establish a time frame for, and provide certain information related to, the application process, and it must conduct an annual survey to solicit feedback on the program. The SBA must collect data on certain performance metrics such as the (1) total number of small businesses assisted by the program, (2) total dollar amount of export sales by participating small businesses, and (3) number of small businesses that have created new jobs through their participation in the program. The bill also requires applicants for participation to include a budget plan that outlines their intended use of funds awarded under the program.

US HB246

Marginal Well Protection Act This bill amends the Clean Air Act to exclude certain facilities from reporting and payment requirements related to methane waste emissions. Under the bill, the requirements do not apply to facilities that produce less than 15 barrels of oil per day and less than 90 thousand cubic feet of natural gas per day.

US HB3100

To amend the National Child Protection Act of 1993 to ensure that businesses and organizations that work with vulnerable populations are able to request background checks for their contractors who work with those populations, as well as for individuals that the businesses or organizations license or certify to provide care for those populations.

Similar Bills

No similar bills found.