Things that make you go hmmm...
So, if you have an eBay business and don't report your income to the IRS - those days are over
If you say your income is $50,000 but you spend a lot on credit cards - you better watch it.
If you're a public official using your Visa card to buy hookers and crack, the IRS and the US government will be able to track you down (think Eliot Spitzer)
I'm for cracking down on tax cheats but this is weird. Here's the language. Someone explain to me 1) how the hell this has anything to do with housing? and 2) what is the intention of our fine government?
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.
July 29, 2008
Big Brother is here.. Why the hell is the IRS going to get the credit card transactions of every American now, thanks to the housing bailout bill?
Posted by blogger at 7/29/2008