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Taxes: Restoring Higher Reporting Thresholds for Online Payment Transactions (SNOOP Act)

This bill aims to repeal the changes made in 2021 that lowered the threshold for reporting third-party network transactions (e.g., PayPal, Venmo) to the Internal Revenue Service (IRS). If enacted, payment platforms would only be required to report transactions if the aggregate amount exceeds $20,000 AND the number of transactions exceeds 200 annually. This change would exempt most small sellers and individuals using these platforms from IRS reporting requirements, reducing their administrative burden and potential scrutiny.
Key points
Restoration of Old Thresholds: Online payment platforms must report transactions to the IRS only if the total amount exceeds $20,000 AND the number of transactions exceeds 200.
Repeal of Lower Threshold: The bill reverses the $600 threshold introduced by the American Rescue Plan Act of 2021, which significantly increased the number of individuals and small businesses subject to reporting.
Impact on Sellers: This change reduces reporting obligations for individuals selling goods or services online who do not meet high sales volumes, protecting their financial privacy from the IRS.
Effective Date: The amendments are intended to apply to tax returns for calendar years beginning after December 31, 2021.
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Additional Information
Print number: 118_HR_488
Sponsor: Rep. Steel, Michelle [R-CA-45]
Process start date: 2023-01-24
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

SNOOP Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_488.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-01-24.

What are the main provisions?

Key points include:

  • Restoration of Old Thresholds: Online payment platforms must report transactions to the IRS only if the total amount exceeds $20,000 AND the number of transactions exceeds 200.
  • Repeal of Lower Threshold: The bill reverses the $600 threshold introduced by the American Rescue Plan Act of 2021, which significantly increased the number of individuals and small businesses subject to reporting.
  • Impact on Sellers: This change reduces reporting obligations for individuals selling goods or services online who do not meet high sales volumes, protecting their financial privacy from the IRS.
  • Effective Date: The amendments are intended to apply to tax returns for calendar years beginning after December 31, 2021.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Steel, Michelle [R-CA-45].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Economy