[69B Z28]

Looks like it's just part of the master plan after reading legislation recently passed by Congress buried in the Housing Relief Tax Bill.

Payment Card Reporting:

"The legislation will require institutions that make payments to merchants in settlement of credit and debit cards, as well as third-party payment networks such as PAYPAL, to report the gross amount of settlements they pay to, or for the benefit of, merchants and other recipients beginning in 2011. Treasury is authorized to establish rules under which the information returns will be filed."

"In the case of third-party payment networks, reporting would only be required on payees who receive at least $20,000 in income from the transactions each year or participate in at least 200 transactions in a year. However, there is not a similar de minimis rule in the case of CREDIT and DEBIT cards. Reporting is required with respect to all payees, including INDIVIDUALS, corporations and partnerships."

" The new reporting requirements will apply for settlements occurring in calendar year 2011. Back-up withholding for those who do not provide a valid taxpayer identification number will be required beginning in 2012."


Money orders and Checks are not their "friends" with this new legislation!