IRS to Begin Cracking Down on "Casual" Retailers

Discussion in 'BlackHat Lounge' started by davidson, May 24, 2010.

  1. davidson

    davidson Registered Member

    Jul 26, 2008
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    The following article talks about something I've been telling everyone on this forum for awhile. A provision in the health care bill (that's what happens when people don't take time to find out what our legislators are doing!) will now require companies to report credit card transactions - including PAYPAL transactions - on a new IRS Form 1099-K. Here's a quote from the article:

    "The rule comes with a floor to weed out the most casual retailers: The 1099-K is only required when a merchant has at least 200 payment transactions a year totaling more than $20,000. But it applies to all payment processors, including Paypal,, and others that service very small businesses."

    You can read the text of the full article here.

    If you are using PayPal and not reporting your income on your tax return, you better think about this and start making plans for how you are going to deal with the changes. There's not much time left.
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