Senate Housing Bill Requires Companies to Report Transactions to the IRS
These companies include banks, credit card companies, eBay, Amazon and Google! LINK (bottom of page 11)
Payment Card and Third Party Network Information Reporting. The
proposal requires information reporting on payment card and third party
network transactions. Payment settlement entities, including merchant
acquiring banks and third party settlement organizations, or third
party payment facilitators acting on their behalf, will be required to
report the annual gross amount of reportable transactions to the IRS
and to the participating payee. Reportable transactions include any
payment card transaction and any third party network transaction.
Participating payees include persons who accept a payment card as
payment and third party networks who accept payment from a third party
settlement organization in settlement of transactions. A payment card
means any card issued pursuant to an agreement or arrangement which
provides for standards and mechanisms for settling the transactions.
Use of an account number or other indicia associated with a payment
card will be treated in the same manner as a payment card. A de minimis
exception for transactions of $10,000 or less and 200 transactions or
less applies to payments by third party settlement organizations. The
proposal applies to returns for calendar years beginning after December
31, 2010. Back-up withholding provisions apply to amounts paid after
December 31, 2011. This proposal is estimated to raise $9.802 billion over ten years
