Thursday, May 14, 2009

IRS Wants to Capture All Sources of Income

There was legislation that was passed in the last year that will require banks, credit card processors and vendors like PayPal to report the dollars processed via card payments. The thought process is that these types of payments go unreported by taxpayers, in particularly the payments processed through PayPal for items like Ebay sales.

You will want to talk with your tax professional if you have been running a side business about the potential implications for accepting payment via credit card or bank cards. Are you in business? Is this a hobby that may have potential reporting consequences? Your tax advisor should be consented to find out for sure.

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