Greg, I think you need to check your tin foil hat again. I think it is too tight and cutting off the bloodflow.
Quote:
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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.
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So let's see: It's an annual report (not a transaction by transaction report), and third party processors don't have to report unless there is more than 10k a year or 200 transactions.
I just don't see the problem here. If anything, as a responsible taxpayer, you should be happy that the government is going after people who have attempted to slip under the radar and take huge amounts of money under the table.
I have to shake my head sometimes.