SNOOP Act of 2025

S. 1375, the SNOOP Act of 2025, would modify tax reporting requirements for third-party payment settlement organizations like PayPal, Venmo, and Cash App. Currently, these platforms must report payment transactions to the IRS if they exceed $600 in a calendar year. This bill would reinstate an exemption that would raise the reporting threshold to $20,000 annually and require at least 200 transactions before reporting is required.

Proponents argue this change would reduce paperwork burdens on small businesses, gig workers, and individuals who use digital payment platforms for casual transactions. Critics contend that raising the threshold could reduce tax compliance and IRS visibility into income that should be reported. The bill is currently under consideration in the Senate Finance Committee and has not yet been voted on by the full chamber.