Posted on 04/12/2025 9:08:54 AM PDT by george76
Legislation Reversing $600 Threshold for Reporting Payments to IRS Filed by U.S. Sen. Bill Hagerty April 11, 2025 Tom Pappert Bill Hagerty U.S. Senator Bill Hagerty (R-TN) filed legislation on Thursday to reverse the decision to require third-party payment processors to report transfers more than $600 to the Internal Revenue Service (IRS). Hagerty called the three-year-old policy an “egregious and unwarranted overreach” into citizens’ privacy.
Hagerty introduced the Stop the Nosy Obsession with Online Payments (SNOOP) Act, which his office said would remove the provisions of the Internal Revenue Code created by former President Joe Biden’s American Rescue Plan (ARP), which required third-party payment processors like PayPal and CashApp to report the transaction histories of customers with volumes of more than $600, lowering the threshold from $20,000 or 200 total transfers.
“The Biden Administration proved to be relentless in its attempt to invade the privacy of Americans’ lives and finances,” stated Hagerty on Thursday.
He added, “It is regrettable that the Biden Administration insisted on advancing their perilous and oppressive political agenda to the detriment of taxpayers’ privacy, heedless of the IRS’s failed track record of protecting Americans’ confidential data and the deep concern of the American people that they served.”
Alluding to his previous, unsuccessful effort to reverse the Biden-era policy in 2022, Hagerty added, “the Trump Administration is thankfully now looking out for the small business owners the Biden Administration ignored,” and said his legislation was an opportunity to “stand up for our small business owners and put an end to this egregious and unwarranted overreach for good.”
More than 40 trade associations representing entire industry sectors signed a letter urging Congress not to approve the legislation in September 2021, while the U.S. Chamber of Commerce called it an “existential threat” to the country’s economy.
Despite the concerns of lawmakers and business leaders, Biden’s ARP was ultimately passed by lawmakers. The proposed changes became part of the federal tax code by November 2022, when the IRS warned taxpayers to begin complying and announced that it planned to raise $8.9 billion through the initiative. By the time the IRS began enforcing the code, the federal deficit had passed $1.4 trillion.
That $600 reporting requirement is one of the worst invasions of financial privacy ever.
It’s just millions of hours weekly of make work to add more control over our lives to the gubmint.
And millions of wasted hours means millions of wasted tax dollars.
I agree, get the government out of all businesses..
The $600 amount is from the 1954 tax code. The inflation adjusted amount in todays dollars is $7,133.
I hope this is a prelude pursuant to legislation replacing the intrusive ‘income tax’ with something else (not going down that bunny hole this morning).
Otherwise, it’s just grandstanding self-gratification and a waste of time.
BTTT
Get rid of FATCA too. Ridiculous invasion of privacy.
Good work, Hagerty. Let’s see if enough of the fake Senate solons will go along to get this federal snooping off the books.
Hopefully this sails through.
The filthy bastards in Washington sure know how to adjust their salaries and pensions for inflation, but choose to deliberately and intentionally leave this $600 threshold exactly where it was.
Nosey Joe (Brian Setzer Orchestra)
There’s a man in town all the women know
He goes by the name of Nosey Joe
He don’t care if they’re married
He takes his pick
Long as they’re women, he’s ready to stick
His big nose in their business
His big nose in their business
That’s Nosey Joe, the nosiest guy I know
He ain’t good lookin’ and he ain’t big and stong
The guy’s got a nose that’s four foot long
I’m tellin’ you women, this ain’t no jive
If you get too close this man will drive
His big nose in your business
His big nose in your business
That’s Nosey Joe, the nosiest guy I know
I saw him just the other day
Tried to steal my gal away
He offered her money
He offered her love
She said thank you sir, but please don’t shove
Your big nose in my business
Your big nose in my business
That’s Nosey Joe, the nosiest guy I know
Old Nosey finally lost his life
Messin’ with my buddy’s wife
My buddy caught him with his chick
Chopped off his nose, now he can’t stick
His big nose in my business
His big nose in my business
That’s Nosey Joe, the nosiest guy I know
[snip] Hagerty introduced the Stop the Nosy Obsession with Online Payments (SNOOP) Act, which his office said would remove the provisions of the Internal Revenue Code created by former President Joe Biden’s American Rescue Plan (ARP), which required third-party payment processors like PayPal and CashApp to report the transaction histories of customers with volumes of more than $600, lowering the threshold from $20,000 or 200 total transfers. |The Biden Administration proved to be relentless in its attempt to invade the privacy of Americans’ lives and finances... the Trump Administration is thankfully now looking out for the small business owners the Biden Administration ignored,” and said his legislation was an opportunity to “stand up for our small business owners and put an end to this egregious and unwarranted overreach for good." ...by November 2022, when the IRS warned taxpayers to begin complying and announced that it planned to raise $8.9 billion through the initiative. By the time the IRS began enforcing the code, the federal deficit had passed $1.4 trillion. [/snip]
Great step in the right direction. Next eliminate the $20K/200 transfer reporting.
They created the 1099-k to differentiate.
All congressional raises and perks should have to be approved by the voters
“That $600 reporting requirement is one of the worst invasions of financial privacy ever.”
Reminds me of nitpicky bosses I have worked for that just loved to hold that power over you.
Thank goodness for some common sense to remove ridiculous regulations like this one.
Hopefully, we can get rid of this cr**.
You are correct. Small businesses still have to report income earned with a 1099. No one sent me anything. When a check came in...it was income...period...
"That $600 reporting requirement is one of the worst invasions of financial privacy ever."
Unfortunately, time has shown that corrupt Congress's abuse of its 16th Amendment powers (direct taxes) has weakened 4th Amendment protections imo.
The 16th Amendment is the pot of gold at the end of the rainbow for organized crime and needs to be repealed along with the 17th Amendment, popular voting for federal senators.
We'll call the repeal amendment Trump's Boston Tea Party II Amendment.
"16th Amendment: The Congress shall have power to lay and collect taxes on incomes, from whatever source derived [emphasis added], without apportionment among the several States, and without regard to any census or enumeration."
"4th Amendment: The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized."
"Congress is not empowered to tax for those purposes which are within the exclusive province of the States." —Justice John Marshall, Gibbons v. Ogden, 1824.
“If the tax be not proposed for the common defence, or general welfare, but for other objects, wholly extraneous, (as for instance, for propagating Mahometanism among the Turks, or giving aids and subsidies to a foreign nation, to build palaces for its kings, or erect monuments to its heroes,) it would be wholly indefensible upon constitutional principles [emphases added].” — Justice Joseph Story, Commentaries on the Constitution 2 (1833).
The congressional record shows that Rep. John Bingham, a constitutional lawmaker, had clarified the federal government's constitutionally limited powers as follows.
”Simply this, that the care of the property, the liberty, and the life of the citizen, under the solemn sanction of an oath imposed by your Constitution, is in the States and not in the federal government [emphases added]. I have sought to effect no change in that respect in the Constitution of the country.” —John Bingham, Congressional. Globe. 1866, page 1292 (see top half of third column)
“Cherish, therefore, the spirit of our people, and keep alive their attention. If once they become inattentive to the public affairs, you and I, and Congress and Assemblies, judges and governors, shall all become wolves [emphasis added]. It seems to be the law of our general nature.” - Thomas Jefferson (Letter to Edward Carrington January 16, 1787)
Pelosi: "We have to pass the bill so that you can find out what is in it." (non-FR; 6 sec.)
Illegals are indeed getting immediate Social Security, contrary to Democrat claims (7.11.24)
Democrats [and RINOs] Are Terrified Of An Educated And Informed Public (3.12.23)
.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.