Accept Credit Cards? You May Be an Audit Target

If you accept credit cards at your place of business, the Internal Revenue Service may have its eye on you.

According to CNNMoney, the IRS has sent letters to 20,000 small-business owners over the past year to verify that they’ve reported all of their cash earnings on their income taxes. Why? Some $140 billion in taxes go unpaid by small businesses every year, and Uncle Sam wants to collect. These letters are an attempt to do so.

Here’s the deal: Since January 2012, payment settlement entities have been required to report all credit card transactions to the IRS on Form 1099-K. These entities include credit card companies like Visa, MasterCard, and American Express, as well as online merchant processors. For example, PayPal files 1099-Ks for account holders who process more than $20,000 in goods and services sales and complete at least 200 transactions.


Reposted with permission. View the rest of the Article: Accept Credit Cards? You May Be an Audit Target

About Tim Parker

Tim Parker is the owner of ECS, LLC, a company specializing in financial and small business content and writing for numerous major media outlets. Find him on Twitter @expositioncreat and Breaking Finance News.

Smart Vault
Now you can upload your tax docs to us! Visit the Smart Vault page in the menu or click this line.    Need to make an appointment but don't have time to call? Text us for an appt at 717.759.4227
Best of York 2017
Need FAQ, Info or Help? Ask us about...

The Affordable Health Care here.
Local IRS Offices
2670 Industrial Hwy, York, PA 17402
Monday-Friday 8:30am - 4:30pm
(Closed for lunch 12:30pm - 1:30pm)
(717) 757-4977

228 Walnut St, Harrisburg, PA 17101
Monday-Friday 8:30am - 4:30pm
(Closed for lunch 12:30pm - 1:00pm) (717) 777-9650

1720 Hempstead Rd, Lancaster, PA 17601
Monday-Friday 8:30am - 4:30pm
(Closed for lunch 12:30pm - 1:00pm)
(717) 291-1994

National Association of Tax Professionals