Congress is on the verge of requiring payment card processors to tell the Internal Revenue Service how much money merchants receive through credit card and debit card transactions.
…
“This proposal does not raise taxes on anyone,” said Baucus, who chairs the Senate Finance Committee. “These information reports would just cause people to file more accurate returns.”
…
The legislation, however, would require credit card processors to withhold taxes on payments to a merchant whose taxpayer identification number (TIN) couldn’t be verified. But there are bound to be errors in the TIN verification process, Darien said, meaning some small businesses could have 28 percent of their credit card reimbursements withheld until the errors are corrected.
More Red Tape
Previous post: Lower Your Client Acquisition costs
Next post: Small Biz Builder – July 2008