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S. 3546: SNOOP Act of 2022


The text of the bill below is as of Feb 1, 2022 (Introduced).

Summary of this bill

This could even affect President Joe Biden’s secret Venmo account that BuzzFeed News found.

Context

Starting next year, third-party digital payment systems like Venmo, PayPal, CashApp, and Zelle must issue a tax form for customers who earn more than $600 a year through such platforms.

Officially, these customers were supposed to self-report such money to the Internal Revenue Service (IRS) all along. In practice, though, many of them weren’t. So Congress added the reporting provision in March 2021’s American Rescue Plan Act, the $1.9 trillion legislation ostensibly primarily focused on Covid relief.

The provision went relatively unnoticed at first, both because the bill was 242 pages and because the …


II

117th CONGRESS

2d Session

S. 3546

IN THE SENATE OF THE UNITED STATES

February 1, 2022

(for himself, Mr. Tillis, Ms. Lummis, Ms. Ernst, Mr. Cruz, Mr. Cramer, Mr. Braun, Mr. Rubio, and Mr. Scott of Florida) 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 2022 or the SNOOP Act of 2022.

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.