S. 1375 – SNOOP Act of 2025

AI-Generated Summary

Updated November 24, 2025 at 1:14 AM UTC

The SNOOP Act of 2025 restores a previous tax‑reporting exemption for third‑party settlement organizations that process payment‑card and network transactions. It requires these organizations to report only when a payee’s total payments exceed $20,000 and 200 transactions in a year, and it aligns backup‑withholding rules with the same thresholds. The changes affect payment processors, merchants, and any payees receiving such settlement payments.

Key Provisions

Restores the de minimis reporting exemption for third‑party settlement organizations (like credit‑card processors) that was removed by the American Rescue Plan Act. Under the restored rule, they must report a payee’s transactions only if the total amount exceeds $20,000 **and** the number of transactions exceeds 200 in a calendar year.
Amends backup‑withholding rules so that payments settling third‑party network transactions are treated as reportable only when the same $20,000 and 200‑transaction thresholds are met. If a payee had reportable payments in the prior year, the exemption does not apply for the current year.
The reinstated de minimis rule takes effect as if it were part of the American Rescue Plan Act (effectively retroactive), while the backup‑withholding changes apply to calendar years beginning after Dec. 31, 2024.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

April 9, 2025

View full timeline

SenateIntro Referral

Introduced in Senate

April 9, 2025

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

April 9, 2025

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in SenateIssued April 9, 2025

II

119th CONGRESS

1st Session

S. 1375

IN THE SENATE OF THE UNITED STATES

April 9, 2025

Mr. Hagerty introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to reinstate the exception for de minimis payments by third party settlement organizations with respect to returns relating to payments made in settlement of payment card and third party network transactions, as in effect prior to the enactment of the American Rescue Plan Act, and for other purposes.

1.

Short title

This Act may be cited as the Stop the Nosy Obsession with Online Payments Act of 2025 or the SNOOP Act of 2025.

2.

Reinstatement of exception for de minimis payments as in effect prior to enactment of American Rescue Plan Act

(a)

In general

Section 6050W(e) of the Internal Revenue Code of 1986 is amended to read as follows:

(e)

Exception for de minimis payments by third party settlement organizations

A third party settlement organization shall be required to report any information under subsection (a) with respect to third party network transactions of any participating payee only if—

(1)

the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions exceeds $20,000, and

(2)

the aggregate number of such transactions exceeds 200.

.

(b)

Effective date

The amendment made by this section shall take effect as if included in section 9674(a) of the American Rescue Plan Act.

3.

Application of de minimis rule for third party network transactions to backup withholding

(a)

In general

Section 3406(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(8)

Other reportable payments include payments in settlement of third party network transactions only where aggregate transactions exceed reporting threshold for the calendar year

(A)

In general

Any payment in settlement of a third party network transaction required to be shown on a return required under section 6050W which is made during any calendar year shall be treated as a reportable payment only if—

(i)

the aggregate number of transactions with respect to the participating payee during such calendar year exceeds the number of transactions specified in section 6050W(e)(2), and

(ii)

the aggregate amount of transactions with respect to the participating payee during such calendar year exceeds the dollar amount specified in section 6050W(e)(1) at the time of such payment.

(B)

Exception if third party network transactions made in prior year were reportable

Subparagraph (A) shall not apply with respect to payments to any participating payee during any calendar year if one or more payments in settlement of third party network transactions made by the payor to the participating payee during the preceding calendar year were reportable payments.

.

(b)

Effective date

The amendment made by this section shall apply to calendar years beginning after December 31, 2024.