The IRS Merchants’ Transactions Reporting Requirements: An Update on First Data Actions
The new transaction reporting requirements require “merchant acquiring entities” to report the gross amount of their merchant customers’ payment card transactions to the IRS. A merchant acquiring entity is defined as the bank or other organization contractually obligated to make payment to merchants in settlement of payment card transactions. These new requirements have created some confusion and anxiety among both merchants and financial institutions—but both parties can minimize frustrations by making the necessary preparations to comply with the law as its requirements are understood today, well in advance of the law’s effective date.
Download updates to our clients and partners on the impact of new IRS reporting requirements (effective January 1, 2011), as well as a mock-up of the web based tool for merchant TIN/name validation and attestation.