December 1st, 2011 by Angela Offerman
After the IRS announcement of transitional relief around Section 6050W at the end of October, many banks and other payment settlement entities breathed a sigh of relief as penalties for noncompliance around 6050W reporting were pushed back one year. However, this temporary relief has created some misconceptions around merchant acquirers’ responsibilities for tax season 2011. Some companies are assuming they can wait another year to build and implement new requirements into their systems instead of viewing this next year as a learning period to perfect their internal reporting processes. Convey’s executive vice president Troy Thibodeau, comments on the true purpose of these changes and offers some advice on how companies should approach the next year in an article published in Green Sheet.
“This is a bold move by the IRS, but it underlines the agency’s belief in tax information reporting as a major tool in combating what it perceives as the $345 billion gap between actual earnings and reported earnings by U.S. taxpayers. The IRS wants this regulation to work, so it’s giving firms a year to perfect their systems, learn from their mistakes and be fully ready by 2013.”
Read the full article on Green Sheet
Convey provides tax information reporting services and software to businesses to make IRS compliance clear and uncomplicated. U.S. federal tax advice contained in this web site is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter that is contained in this document. (iii) The taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.