Business
Republican Senators introduce bill to cancel $600 tax reporting rule for third-party apps
Before the American Rescue Plan was passed in March 2021, the threshold for reporting was $20,000 total. The new lower limit has been criticized for invading privacy and hurting small business owners
February 10, 2022 4:59pm
Updated: February 10, 2022 5:02pm
Sen. Bill Hagerty (R-TN) introduced a bill on Tuesday that would eliminate a new tax provisions that mandates third-party payment processors like Venmo and PayPal to begin reporting accounts with business transactions totaling more than $600 per year to the IRS.
Before the American Rescue Plan was passed in March 2021, the threshold for reporting was $20,000 total. The new lower limit has been criticized for invading privacy and hurting small business owners that the bill was designed to help by increasing expenses and forcing thousands to fill out 1099-K forms to comply.
“The Biden Administration is relentless in their attempt to invade the privacy of Americans’ lives and finances,” Hagerty, who sits on the Senate Banking Committee, told the Washington Examiner.
“It is past time we stand up for our small business owners and say 'no more snooping' to this administration’s egregious and unwarranted overreach,” he added.
The Tennessee Republican’s supporters include both of Florida’s Senators, who have spoken in support of the Stop the Nosy Obsession with Online Payments Act, or SNOOP Act.
“Let me be clear: reckless spending is causing inflation, and further increasing costs and regulations on already-struggling Americans only makes things worse,” said Sen. Rick Scott (R-FL). “I want to thank Senator Hagerty for continuing our fight in protecting working-class families, and I urge my colleagues for their support of the SNOOP Act."
“The Biden Administration’s total disregard for privacy has to be stopped. There is no reason that the IRS should be putting Americans' confidential transactions under a microscope. I will continue to fight for taxpayer privacy and push back against this gross overreach of federal power,” said Sen. Marco Rubio (R-FL).
The Biden administration tried but failed to expand the $600 rule to all bank accounts. The current law requires all accounts that exceed the threshold begin reporting to the IRS this year.
