SNOOP Act of 2023

HR 488, the SNOOP Act of 2023, modifies tax reporting requirements for third-party payment platforms like PayPal or Venmo. It sets new thresholds requiring these platforms to report transaction data to the IRS only when a business or individual receives over $20,000 in payments or has more than 200 transactions in a year. This directly affects payment processors by reducing the number of transactions they must report compared to current rules. The bill aims to streamline reporting for smaller transactions while maintaining oversight for significant activity. It applies to tax returns filed for calendar years starting after 2021.