SNOOP Act of 2022

Stop the Nosy Obsession with Online Payments Act of 2022 or the SNOOP Act of 2022

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.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3546 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 3546

  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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 1, 2022

Mr. Hagerty (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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 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''.

SEC. 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.
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