New Law makes google, ebay, amazon, cc companies report all transactions to Feds

[RawAlex]

Greg, I think you need to check your tin foil hat again. I think it is too tight and cutting off the bloodflow.

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.

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.

[pam]

CCBill and such pay me more than $10k a year. It's reported on my taxes already. I don't see the problem. 'but the bill specifically targets payment systems like eBay's PayPal, Amazon, and Google Checkout that are used by many small online businesses.' I didn't know Amazon had their own payment system other than a credit card that goes through another company. If people are earning $10k via say Google Checkout selling tangible goods, then they most likely are running a business anyway. If not, then they will quickly learn to get receipts for the purchase price of what they buy so they can determine the profit and write off what they can.

[gonzo]

Originally Posted by pam

CCBill and such pay me more than $10k a year. It's reported on my taxes already. I don't see the problem. 'but the bill specifically targets payment systems like eBay's PayPal, Amazon, and Google Checkout that are used by many small online businesses.' I didn't know Amazon had their own payment system other than a credit card that goes through another company. If people are earning $10k via say Google Checkout selling tangible goods, then they most likely are running a business anyway. If not, then they will quickly learn to get receipts for the purchase price of what they buy so they can determine the profit and write off what they can.

These processors have enjoyed being below the radar longer than I thought they would. Uncle Sammy is getting his now.

[Greg B]

Originally Posted by gonzo

These processors have enjoyed being below the radar longer than I thought they would. Uncle Sammy is getting his now.

Taxes ain't the problem, it's the management of those taxes and the abuse of the authority I'm talking about. It's not gray area and one of history. In the past 15 years there have been many reforms in the IRS. That's a good sign, however, we've seen far too many instances of people abusing government authority for criminal purposes and the decreases in the Bush cabinet/henchmen is proof of that.

I think half the IRS staff are relatives of mine, believe me I know.

[RawAlex]

Originally Posted by Greg B

Taxes ain't the problem, it's the management of those taxes and the abuse of the authority I'm talking about. It's not gray area and one of history. In the past 15 years there have been many reforms in the IRS. That's a good sign, however, we've seen far too many instances of people abusing government authority for criminal purposes and the decreases in the Bush cabinet/henchmen is proof of that.

I think half the IRS staff are relatives of mine, believe me I know.

As I said above, you need to loosen up that tin foil hat... the blood ain't making it to your brain anymore.