SNOOP Act & Saving Gig Economy Taxpayers Act repeals new TPSO requirement
WASHINGTON, D.C. (March 4, 2022) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, sent letters of support to the U.S. Senate and House of Representatives supporting S. 3546/H.R. 6913, the Stop the Nosy Obsession with Online Payments Act (SNOOP Act) and H.R. 3425, the Saving Gig Economy Taxpayers Act. These bills would repeal a provision in the American Rescue Plan Act (ARPA) which will require Third-Party Settlement Organizations (TPSOs), such as PayPal, Venmo, and Cash App, to issue a 1099-K for goods and service transactions totaling $600 or more in annual gross sales.
“Small businesses have long reported tax-related issues as some of their top business problems,” said Kevin Kuhlman, NFIB Vice President of Federal Government Relations. “This provision could subject small business owners to receive a 1099-K for transactions where they have no tax liability and will only further complicate their tax administrative burden.”
Previously, TPSOs were only required to issue a 1099-K for users with $20,000 in goods and services transactions and more than 200 transactions in a calendar year. Small business owners reported in the latest NFIB Problems and Priorities survey that tax-related issues continue to be a significant problem with four out of the top 10 business concerns being tax-related.