Hoeven Helps Introduce Legislation to Repeal Burdensome Tax Reporting Threshold
Bill Would Repeal Intrusive Tax Law Targeting Third-Party Payment Platforms
WASHINGTON – Senator John Hoeven today helped reintroduce the Stop the Nosy Obsession with Online Payments (SNOOP) Act, a bill sponsored by Senator Bill Hagerty (R-Tenn.) to repeal the American Rescue Plan requirement that third-party payment platforms report businesses’ gross transaction volumes totaling more than $600 to the Internal Revenue Service (IRS).
Previously, payment providers were only required to report information when a payee had over 200 commercial transactions per year that exceeded $20,000. In December, the IRS announced that they would delay the implementation of this tax scheme, which would have effectively resulted in increased taxes on thousands of small businesses and entrepreneurial individuals, and would have further complicated the tax filing process for taxpayers who would be receiving 1099-Ks for the first time for tax year 2022. The IRS announcement delayed the implementation of this provision until tax year 2023.
“This change to the tax code, pushed through by Congressional Democrats and the Biden administration, effectively increases taxes and further complicates the tax filing process for thousands of entrepreneurial individuals and small businesses. While the IRS wisely delayed the implementation of this provision for one-year, we will continue working to provide certainty to the American taxpayer by fully repealing this new burdensome reporting threshold,” said Hoeven.
In addition to Hoeven and Hagerty, cosponsors of the legislation include Senators Kevin Cramer (R-N.D.), Cynthia Lummis (R-Wyo.), Ted Cruz (R-Texas), John Kennedy (R-La.), John Barrasso (R-Wyo.), and James Lankford (R-Okla.).
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