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Who’s Subject to Reporting
All merchants who accept payments through credit cards, debit cards, gift
cards and PayPal will receive information returns telling them – and the
IRS – the gross amount of the merchant card transactions. This will be
broken down month by month. While the form uses the word “card,” the IRS
has made it clear that this is interpreted broadly to include third-party
network transactions (i.e., PayPal).
All merchants who accept payments through credit cards, debit cards, gift
cards and PayPal will receive information returns telling them – and the
IRS – the gross amount of the merchant card transactions. This will be
broken down month by month. While the form uses the word “card,” the IRS
has made it clear that this is interpreted broadly to include third-party
network transactions (i.e., PayPal).
