Bills · S 1375
IN COMMITTEE· 119TH CONGRESS
Senate BillS 1375Taxation
SNOOP Act of 2025
INTRO APR 9· LAST ACTION APR 9
READING
3MIN
COSPONSORS
8
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it addresses a change made by the American Rescue Plan Act that significantly expanded the number of people receiving tax forms (Form 1099-K) for online transactions. Many individuals who sell items casually, such as used goods or handmade crafts, found themselves receiving these forms for relatively small amounts, leading to confusion about their tax obligations and increased administrative burden.
If this bill becomes law, it would reduce the number of 1099-K forms issued by payment apps, making tax filing simpler for many part-time sellers and gig workers. It means the IRS would receive less information about smaller online transactions. If it doesn't pass, the current $600 reporting threshold will remain, and a larger number of individuals will continue to receive these tax forms, potentially facing greater complexity in managing their tax reporting for online sales.
KEY PROVISIONS
4AI-extractedPROVISION 01
Reinstates the previous reporting threshold for Form 1099-K, requiring third-party payment organizations to report transactions only if the gross amount exceeds $20,000 AND the number of transactions exceeds 200 in a calendar year.
This significantly reduces the number of people and small businesses who will receive a 1099-K form from payment apps.
PROVISION 02
Makes the change to the 1099-K reporting threshold effective as if it were part of the original American Rescue Plan Act, meaning it would apply to prior tax years affected by the $600 threshold.
This means the higher reporting threshold would apply retroactively, potentially affecting tax filings from previous years.
PROVISION 03
Applies the same $20,000 and 200 transaction threshold to 'backup withholding' rules for third-party network transactions.
This prevents payment apps from withholding taxes on payments for smaller amounts unless the recipient meets the higher reporting criteria.
PROVISION 04
Sets the effective date for the backup withholding changes to calendar years beginning after December 31, 2024.
This specifies when the new backup withholding rules would start to apply.
SPONSORSHIP
1 + 8
R· Tennessee
YRS IN OFFICE
5
BILLS LED
27
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 0 REP 8 IND 0
ACTION TIMELINE
2 EVENTSAPR 9
Introduced in Senate
APR 9
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 1375
Congress119th
StatusIn Committee
IntroducedApr 9, 2025
Last actionApr 9, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED APR 9, 2025
Senate BillS 1375Taxation
SNOOP Act of 2025
INTRODUCED APR 9, 2025· LAST ACTION APR 9, 2025
PASSAGE CHANCES
—%
READING
3 min
COSPONSORS
8
COMPLEXITY
Moderate
