Tax Law Updates | New Proposed Regulations
December 10, 2009
IRS Issues Proposed Regulations on Reporting Requirement for Payment Card and Third-Party Payment Transactions
Information Reporting for Payments Made in Settlement of Payment Card and Third Party Network Transaction
26 CFR Parts 1, 31, and 301; REG-139255-08; RIN 1545-BI51, 11/23/2009
The Internal Revenue Service (:IRS”) has issued proposed regulations under a new statute requiring that, starting with transactions in calendar year 2011, the gross amount of payment card and third-party network transactions be reported annually to participating merchants and the IRS.
The IRS explained that the provision was enacted as part of the Housing Assistance Tax Act of 2008 and is designed to improve voluntary tax compliance by business taxpayers and help the IRS determine whether their tax returns are correct and complete.
“Time and time again, we have seen that better information reporting helps the tax system work better by…
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