SNOOP Act of 2025

This bill would restore the old tax reporting rule for payment card companies and third‑party payment networks. Platforms would only have to report your payments to the IRS if, in a single year, your total is over $20,000 and you have more than 200 transactions, returning to the pre–American Rescue Plan Act standard. It also updates when these companies must withhold part of a payout for taxes: they would only withhold if you go over both of those thresholds in that year. If your payments were reportable last year, that protection doesn’t apply the next year.

In short, it brings back the prior “small payments” exception for third‑party networks, like the rules that existed before the American Rescue Plan Act.

• Who is affected: People and businesses paid through third‑party payment networks and payment card transactions.
• What changes: Reporting to the IRS would only happen if yearly payments exceed $20,000 and 200 transactions; tax withholding by these companies would follow the same thresholds, with an exception if last year’s payments were reportable.
• When: The withholding rule applies starting with calendar years after December 31, 2024; the reporting change takes effect on the same timeline as the American Rescue Plan Act provision it replaces.