II
119THCONGRESS
1
STSESSION S. 1375
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.
IN THE SENATE OF THE UNITED STATES
APRIL9, 2025
Mr. H
AGERTYintroduced 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.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
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•S 1375 IS
SECTION 1. SHORT TITLE. 1
This Act may be cited as the ‘‘Stop the Nosy Obses-2
sion with Online Payments Act of 2025’’ or the ‘‘SNOOP 3
Act of 2025’’. 4
SEC. 2. REINSTATEMENT OF EXCEPTION FOR DE MINIMIS 5
PAYMENTS AS IN EFFECT PRIOR TO ENACT-6
MENT OF AMERICAN RESCUE PLAN ACT. 7
(a) I
NGENERAL.—Section 6050W(e) of the Internal 8
Revenue Code of 1986 is amended to read as follows: 9
‘‘(e) E
XCEPTION FOR DEMINIMISPAYMENTS BY 10
T
HIRDPARTYSETTLEMENT ORGANIZATIONS.—A third 11
party settlement organization shall be required to report 12
any information under subsection (a) with respect to third 13
party network transactions of any participating payee only 14
if— 15
‘‘(1) the amount which would otherwise be re-16
ported under subsection (a)(2) with respect to such 17
transactions exceeds $20,000, and 18
‘‘(2) the aggregate number of such transactions 19
exceeds 200.’’. 20
(b) E
FFECTIVEDATE.—The amendment made by 21
this section shall take effect as if included in section 22
9674(a) of the American Rescue Plan Act. 23
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•S 1375 IS
SEC. 3. APPLICATION OF DE MINIMIS RULE FOR THIRD 1
PARTY NETWORK TRANSACTIONS TO BACKUP 2
WITHHOLDING. 3
(a) I
NGENERAL.—Section 3406(b) of the Internal 4
Revenue Code of 1986 is amended by adding at the end 5
the following new paragraph: 6
‘‘(8) O
THER REPORTABLE PAYMENTS INCLUDE 7
PAYMENTS IN SETTLEMENT OF THIRD PARTY NET -8
WORK TRANSACTIONS ONLY WHERE AGGREGATE 9
TRANSACTIONS EXCEED REPORTING THRESHOLD 10
FOR THE CALENDAR YEAR .— 11
‘‘(A) I
N GENERAL.—Any payment in set-12
tlement of a third party network transaction re-13
quired to be shown on a return required under 14
section 6050W which is made during any cal-15
endar year shall be treated as a reportable pay-16
ment only if— 17
‘‘(i) the aggregate number of trans-18
actions with respect to the participating 19
payee during such calendar year exceeds 20
the number of transactions specified in 21
section 6050W(e)(2), and 22
‘‘(ii) the aggregate amount of trans-23
actions with respect to the participating 24
payee during such calendar year exceeds 25
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•S 1375 IS
the dollar amount specified in section 1
6050W(e)(1) at the time of such payment. 2
‘‘(B) E
XCEPTION IF THIRD PARTY NET -3
WORK TRANSACTIONS MADE IN PRIOR YEAR 4
WERE REPORTABLE .—Subparagraph (A) shall 5
not apply with respect to payments to any par-6
ticipating payee during any calendar year if one 7
or more payments in settlement of third party 8
network transactions made by the payor to the 9
participating payee during the preceding cal-10
endar year were reportable payments.’’. 11
(b) E
FFECTIVEDATE.—The amendment made by 12
this section shall apply to calendar years beginning after 13
December 31, 2024. 14
Æ
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