Hagerty Reintroduces Legislation to Reverse IRS Snooping of Third-Party Payment Platforms

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April 9, 2025
WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Banking Committee, today reintroduced theStop the Nosy Obsession with Online Payments,orSNOOP, Act, a bill to strike the tax code provision inserted by the Biden Administration in the American Rescue Plan (ARP) that requires third-party payment platforms to report businesses’ gross transaction volumes totaling more than $600 to the Internal Revenue Service (IRS).Prior to the ARP, payment providers were only required to report information when a payee had over 200 commercial transactions per year that exceeded $20,000. As a result of the new provision, thousands of small businesses will have to fill out 1099-Ks to provide their personal information to the IRS, despite the IRS’ poor history of safeguarding Americans’ personal data.“The Biden Administration proved to be relentless in its attempt to invade the privacy of Americans’ lives and finances,”said Senator Hagerty.“It is regrettable that the Biden Administration insisted on advancing their perilous and oppressive political agenda to the detriment of taxpayers’ privacy, heedless of the IRS’s failed track record of protecting Americans’ confidential data and the deep concern of the American people that they served. Though Republican efforts to repeal these new requirements were ignored for years, the Trump Administration is thankfully now looking out for the small business owners the Biden Administration ignored. It is past time we stand up for our small business owners and put an end to this egregious and unwarranted overreach for good.”
Background:
Full text of the legislation can be foundhere.
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