Sen. Bill Hagerty, a Tennessee Republican, has introduced the Stop the Nosy Obsession with Online Payments Act in an effort to eliminate the tax code provisions in the American Rescue Plan introduced by President Biden. The American Rescue Plan mandates that third-party payment processors are obliged to report business transactions made by users that exceed $600, these platforms include Venmo, PayPal, and Cash App. Prior to the new plan being put in place, these platforms were only obliged to report the gross income of payees that made 200 distinct transactions exceeding the amount of $20,000 to the Internal Revenue Service.
The new tax provision will mean that thousands of smaller businesses will now need to file 1099-Ks with personal information to the IRS. According to Sen. Hagerty’s press release circulated by the Washington Examiner, that would pose a huge risk to the American public due to “the IRS’ poor history of safeguarding Americans’ personal data.” According to the Republican Senator, this is one more move made by the Biden administration to invade the privacy of American lives.
In his statement, Hagerty noted “It is regrettable that this Administration insists on advancing their perilous and oppressive political agenda to the detriment of taxpayers’ privacy, heedless of their failed track record of protecting Americans’ confidential data. 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.”
The push for the SNOOP Act is not getting pushed by the Republican Senator who has on his side many GOP senators. Apart from the loss of privacy, the new tax code is bound to drive up the costs for smaller businesses and even independent contractors who will now be required to report all those business transactions.