Sen. Bill Hagerty, R-Tenn., on Tuesday introduced a new bill to remove a provision in the American Rescue Plan that would require third-party payment processors to report users’ business transactions over $600.
According to the Washington Examiner, the tax code provision in the American Rescue Plan reduced the amount of gross income that apps like PayPal and Venmo need to report on payees with more than 200 distinct transactions, from $20,000 to $600.
This would mean that thousands of small businesses must file 1099-K forms with the IRS, which has some concerns over "the IRS' poor history of safeguarding Americans' personal data," according to a press release shared with the Examiner. The Stop the Nosy Obsession with Online Payments Act introduced by Hagerty would "repeal the amendments made to reporting of third-party network transactions by the American Rescue Plan Act of 2021."
"The Biden Administration is relentless in their attempt to invade the privacy of Americans' lives and finances," Hagerty said in a statement.
"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."
Sen. Rick Scott, R-Fla., issued a statement of support for the bill to the Examiner.
"Along with trillions in unnecessary and unrelated spending in their so-called 'COVID' spending package, Biden and the Democrats snuck in a tax increase on gig workers, like hardworking Americans that drive for Uber, Lyft or DoorDash," Scott said. "Meanwhile, Democrats refuse to acknowledge the inflation and supply chain crisis.
"Let me be clear: reckless spending is causing inflation, and further increasing costs and regulations on already-struggling Americans only makes things worse. I want to thank Sen. Hagerty for continuing our fight in protecting working-class families, and I urge my colleagues for their support of the SNOOP Act."
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