The 2008 Housing and economic recovery Act provided a provision that require banks and credit card merchants to report payments to the IRS. The provision which took effect in 2012, affected how businesses, including online ecommerce businesses, report their annual gross receipts.

 

As a growing number of consumers are using credit cards for their purchases. Whether swiped, keyed, tapped (contactless) or dipped (Chip), all credit card purchases are now reported to the IRS if they exceed 200 transaction and $20,000 in annual proceeds. The Form name is 1099-K, Merchant Card and Third-party Network Payments.

 

The provision was meant to “improve voluntary tax compliance by business taxpayers and help the IRS determine whether their tax returns are correct and complete.â€

 

Presenter will share practice cases for small businesses that received IRS under-reporting letters as result of the provision.

 

Prof. Ahmed Abelhalim

Assistant Professor

Business & Technology Department

LaGuardia Community College

31-10 Thomson Avenue

Long Island City, NY 11101

 

Tel:   718-482-5611

Cell : 646 -326-7003

Email: aabdelhalim@lagcc.cuny.edu