What This Bill Does
This bill changes tax reporting rules for online payment companies. It repeals changes that were made by the American Rescue Plan Act of 2021 to how third party settlement organizations report payment transactions.
Who It Affects
Third party settlement organizations (companies that process online payments for small businesses and individuals).
Key Provisions
• Third party settlement organizations must report payment information only when the total amount of transactions exceeds $20,000 and there are more than 200 transactions in a year. (Sec. 2(a))
• A section reference describing certain payment transactions is removed from the tax code. (Sec. 2(b))
What Changes
Currently, companies must report smaller transaction amounts. This bill raises the reporting threshold so companies only have to report when payments exceed $20,000 and involve over 200 transactions.
Important Definitions
Third party settlement organization: A company that processes payment transactions for other businesses or individuals.
Effective Date
The main change applies to tax returns for years starting after December 31, 2021. (Sec. 2(c)(1))
The secondary change applies to transactions after the American Rescue Plan Act of 2021 became law. (Sec. 2(c)(2))
I
118TH CONGRESS
1ST SESSION
H. R. 488
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 HOUSE OF REPRESENTATIVES
JANUARY 24, 2023
Mrs. STEEL (for herself, Ms. SALAZAR, Mr. MCCLINTOCK, Mr. BURCHETT,
Mrs. MILLER-MEEKS, Mr. JOHNSON of Ohio, and Mr. CRENSHAW) intro-
duced the following bill; which was referred to the Committee on Ways
and Means
A BILL
To amend the Internal Revenue Code of 1986 to repeal
the amendments made to reporting of third party net-
work transactions by the American Rescue Plan Act
of 2021.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Stop the Nosy Obses-
4
sion with Online Payments Act of 2023’’ or the ‘‘SNOOP
5
Act of 2023’’.
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•HR 488 IH
SEC. 2. REPEAL OF MODIFICATION OF EXCEPTIONS FOR
1
REPORTING
OF
THIRD
PARTY
NETWORK
2
TRANSACTIONS.
3
(a) IN GENERAL.—Section 6050W(e) of the Internal
4
Revenue Code of 1986 is amended to read as follows:
5
‘‘(e) EXCEPTION FOR DE MINIMIS PAYMENTS BY
6
THIRD PARTY SETTLEMENT ORGANIZATIONS.—A third
7
party settlement organization shall be required to report
8
any information under subsection (a) with respect to third
9
party network transactions of any participating payee only
10
if—
11
‘‘(1) the amount which would otherwise be re-
12
ported under subsection (a)(2) with respect to such
13
transactions exceeds $20,000, and
14
‘‘(2) the aggregate number of such transactions
15
exceeds 200.’’.
16
(b)
CONFORMING
AMENDMENT.—Section
17
6050W(c)(3) of the Internal Revenue Code of 1986 is
18
amended
by
striking
‘‘described
in
subsection
19
(d)(3)(A)(iii)’’.
20
(c) EFFECTIVE DATE.—
21
(1) IN
GENERAL.—The amendment made by
22
subsection (a) shall apply to returns for calendar
23
years beginning after December 31, 2021.
24
(2) CLARIFICATION.—The amendment made by
25
subsection (b) shall apply to transactions after the
26
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•HR 488 IH
date of the enactment of the American Rescue Plan
1
Act of 2021.
2
Æ
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