The Senate bill would repeal the hated $600 IRS reporting threshold

By Kim Jarrett (The Center Square)

US Sen. Kevin Kramer, RN.D. And seven other senators have signed a bill to repeal the tax cap on reporting third-party payments.

Under a provision in the American Savings Plan Act, business transactions in excess of $600 annually are reported to the IRS by payment platforms.

A stop to the nosy obsession with online payments, known as the SNOOP Act, puts the limit at $20,000 per year for a minimum of 200 transactions.

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“Small business owners and independent contractors need to be bailed out by this American Rescue Plan Act provision, which, fortunately, has not yet been enacted by the IRS,” Cramer said in a news release. “Our bill would prevent the enforcement of burdensome regulation and establish a more reasonable reporting threshold.”

“This invasion of taxpayer privacy is yet another example of administrative overreach and must be stopped in its tracks,” he said.

Cramer offered a similar co-sponsorship Bill previous year. According to congressional records, it was assigned to the Senate Finance Committee but never made it to the Senate floor for a vote.

The IRS has delayed implementing the regulation until the 2022 tax year.

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“The IRS and Treasury have heard a number of concerns regarding the implementation timeline of these changes under the American Rescue Plan,” Acting IRS Commissioner Doug O’Donnell said in December. “The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide taxpayers with more time to prepare and understand the new reporting requirements.”

Sens. John Hoven, RN.D, Bill Haggerty, R-Tenn., Cynthia Lummis, R-Wyo., Ted Cruz, R-Texas, John Kennedy, R-La., John Barrasso, R-Wyo. and James Lankford, R-Okla. Co-sponsor of the bill.

Syndicated with permission from The Center Square.