IRS Reporting
In February of last year, we discussed the IRS reporting requirements statute, which was added in November of 2009 to the Housing Assistance Tax Act of 2008. In a nutshell, this statute required all credit card processing companies to report the merchant services activities of all merchants beginning January 1st, 2011. Processors are also required to report the correct legal name, Tax Payer Identification Number and address of all merchants processing credit cards. It is imperative that the information we have on record is accurate, as the IRS backup withholding rules will be applied to this statute. This means that our processors will be required to withhold Federal Income Tax (currently 28%) if any pertinent information is missing or if there are any discrepancies with Federal Tax ID