New Senate bill requires all credit card transactions be reported

[Balog]

Specifically lists 3rd party stuff like paypal as well. 

http://www.freedomworks.org/newsroom/press_template.php?press_id=2571

The official Senate summary.

http://rpc.senate.gov/public/_files/L62HR3221Houseamendments0618SN.pdf

A portion.

Payment Card and Third Party Network Information Reporting. The proposal requires information reporting on payment card and third party network transactions. Payment settlement entities, including merchant acquiring banks and third party settlement organizations, or third party payment facilitators acting on their behalf, will be required to report the annual gross amount of reportable transactions to the IRS and to the participating payee. Reportable transactions include any payment card transaction and any third party network transaction. Participating payees include persons who accept a payment card as payment and third party networks who accept payment from a third party settlement organization in settlement of transactions. A payment card means any card issued pursuant to an agreement or arrangement which provides for standards and mechanisms for settling the transactions. Use of an account number or other indicia associated with a payment card will be treated in the same manner as a payment card. A de minimis exception for transactions of $10,000 or less and 200 transactions or less applies to payments by third party settlement organizations. The proposal applies to returns for calendar years beginning after December 31, 2010. Back-up withholding provisions apply to amounts paid after December 31, 2011.

[RevDisk]

Too many people starting to make a living off online sales.  IRS needs to keep tabs on them.  I'm just amazed it took this long before they started trying to throttle Internet commerce.

[MicroBalrog]

Remember, you are not being oppressed.

[PTK]

Well, I'll just go back to using USPS money orders, then. 

[wmenorr67]

Can anyone decipher the double speak?

Don't think it will pass.

[Finch]

Can anyone decipher the double speak?

Don't think it will pass.

Hey, if they can pass the Patriot Act....they can pass anything...

[Manedwolf]

They want the all-pervasive black market of cyberpunk dystopia realllllly bad, don't they.

Keep pushing, guys, keep pushing. Make the underground economy worthwhile, then "BAWWW" when the tax revenues suddenly drop as the transactions go under the surface...

[RevDisk]

Can anyone decipher the double speak?

Don't think it will pass.

They want to hit people that run eBay stores and other online stores because it's not easy to tax them accurately at the moment.  That's it.

[GigaBuist]

Don't think it will pass.

Looks like they're just shoring up differences between the House and Senate versions right now.  I'd give it a 90% chance of the Senate passing it.

[just Warren]

Government: making things harder and more expensive since....forever.

[coppertales]

I thought the government had access to that info anyway.   I have read in the news where a fugative is traveling across the country and they can follow him by his credit card expendatures.........chris3

[Firethorn]

I thought the government had access to that info anyway.   I have read in the news where a fugative is traveling across the country and they can follow him by his credit card expendatures.........chris3

There's a substantial difference between the police showing up with a warrant for a given wanted person's credit card information(including continuing updates) and having ALL transactions sent to a federal agency.

[Brad Johnson]

They want to hit people that run eBay stores and other online stores because it's not easy to tax them accurately at the moment.  That's it.

That doesn't make any sense.  The taxes on internet stores would be at the state level (sales tax).  All the fed are concerned with is income tax.  If they are going after that all they have to do is lower the limit on reported deposits to $1.

With the $10,000 exception limit it looks more like they are trying to keep tabs on large single-sum transactions (i.e. large-scale money laundering via the interwebz).

Brad

[Tallpine]

de minimis exception for transactions of $10,000 or less

Won't be long that will just be a tank of gas