SNOOP Act of 2025

This bill modifies tax reporting rules for payment platforms like Venmo or PayPal. It reinstates a higher reporting threshold, requiring third-party payment processors to report transactions only if a user's total exceeds $20,000 or 200 transactions in a year - reverting to pre-American Rescue Plan rules. The law directly affects payment processors and small businesses/freelancers who receive frequent small payments through these platforms. It takes effect for 2025 calendar years, reducing administrative burdens for low-volume transactions.