S. 1375 — SNOOP Act of 2025

This section reinstates the de minimis exception for third party settlement organization (TPSO) reporting under IRC §6050W(e), requiring a TPSO to report third party network transactions (i.e., payments to participating payees such as sellers via platforms like PayPal or Venmo) on Form 1099-K only if the total amount exceeds $20,000 and there are more than 200 transactions (from the $600 total amount threshold with no transaction minimum established by the American Rescue Plan Act of 2021).

This section provides that payments in settlement of third-party network transactions are treated as reportable payments for backup withholding purposes only if the aggregate number of such transactions with the participating payee exceeds the number specified in section 6050W(e)(2) and the aggregate amount exceeds the dollar amount specified in section 6050W(e)(1) for the calendar year, unless such payments were reportable in the preceding calendar year. (Thus, backup withholding on these payments—processed by third-party settlement organizations such as PayPal or Venmo—generally applies only after a payee exceeds the section 6050W de minimis reporting thresholds once.) The amendment applies to calendar years beginning after December 31, 2024.