SNOOP Act Aims To Eliminate Reports To IRS Of Payments Exceeding $600 By Third-Party Platforms

By Ria Roebuck Joseph | Center Square contributor, The Center Square California

January 31, 2023

(The Center Square) - Legislation to eliminate a provision of the American Rescue Plan (ARP) which requires platforms like Paypal, Zelle and Venmo to report transactions grossing more than $600 to the Internal Revenue Service was reintroduced in the House of Representatives this month.

The Stop the Nosy Obsession with Online Payments Act of 2023 (SNOOP) Act proposed by California Republican Rep. Michelle Steel seeks to restore reporting requirements for taxpayers to those with more than 200 commercial transactions annually, and transactions in excess of $20,000.

The provision was changed in March 2021 when the Biden administration included it as part of the ARP Act, requiring the personal information of small businesses and gig workers and reporting by third-party payment platforms, for transactions in excess of $600.

“We will not allow the Biden Administration to weaponize government to target hardworking American taxpayers,” Steel stated.

The Original cosponsors of the act were Reps. Maria Elvira Salazar (R-Fla.), Tom McClintock (R-Calif), Tim Burchett (R-Tenn.), Mariannette Miller-Meeks (R-Iowa), Bill Johnson (R-Ohio), and Dan Crenshaw (R-Tex.). The bill was reintroduced by Rep Michelle Steel with companion legislation in the senate by Sen. Bill Hagerty (R-Tenn.).

“I am proud to re-introduce the SNOOP Act with Senator Hagerty to ensure the heavy hand of government bureaucracy stays off the necks of families as they go about their daily lives. I urge my colleagues to join me in defending the privacy of all Americans and ending the IRS’s egregious overreach,” Steel said.

“The Biden administration’s egregious attempt to invade the lives and finances of the American people is unwarranted, unacceptable, and un-American,” said Hagerty.

If enacted, the restored regulations of the bill would apply to returns for calendar years beginning after Dec. 31, 2021.

Sen Hagerty said, “It is long overdue for Congress to fix this mess, rather than kicking the can down the road as the Biden administration has done. I am pleased that Representative Steel is joining me and my colleagues in our effort to stop this administration’s snooping and protect American taxpayers’ privacy for good. I urge our colleagues in both chambers to stand up for our small business owners and taxpayers and pass this critical piece of legislation.”

The focus of the work of The Center Square California is state and local-level government and economic reporting that approaches stories with a taxpayer sensibility.