IRS to Keep Closer Eye on Your Debit and Credit Card Purchases

August 18, 2011

Be careful what you buy! The Internal Revenue Service will be intensifying its monitoring of credit and debit card expensive in order to more easily discover inconsistencies on income claimed on tax returns.

First, a little bit of background courtesy of Accounting Today:

“A 2008 law required that debt and credit card payments be tracked by banks and third-party payment settlement organizations and reported to the IRS,” the site explains. “The agency was then supposed to match the information with the income that taxpayers report on their returns as part of an ongoing effort to improve tax compliance. The Treasury Department estimated the new information reporting requirement would bring in an extra $10 billion a year in tax revenue.”

This week, though, Accounting Today states a government report determined that the IRS should enhance the way it oversees merchant card reporting as mandated by the guidelines in the 2008 law, known as the Housing and Economic Recovery Act. Click here to read the full article and for more details on the report’s findings.

Related Content


Wells Fargo to Start Charging for Debit Cards; Is Your State Affected?

Jon Stewart to Sen. Durbin: “Is This the Worst It’s Been?”

MasterCard Execs Outline General Response to New Debit Rules

Does Durbin = Doom for the Underbanked? FI Expert Examines

2 Major U.S. Banks Lower Estimates for Lost Revenue from Debit Swipe Fees


Exclusive PYMNTS Study: 

The Future Of Unattended Retail Report: Vending As The New Contextual Commerce, a PYMNTS and USA Technologies collaboration, details the findings from a survey of 2,325 U.S. consumers about their experiences with shopping via unattended retail channels and their interest in using them going forward.

Click to comment