IRS Rules on Payment Transactions Would Require Duplicate Reporting

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Although many commenters have asked IRS not to require duplicate reporting of credit card payment transactions under different tax code sections, the service says Nov. 23 that duplicate reporting is warranted in some circumstances. In proposed rules (REG-139255-08), IRS outlines its rationale for requiring some transactions to be reported more than once. For one thing, the burden for reporting may fall on different entities, IRS says. Under Section 6041, the reporting entity is the payor, while under Section 6050W, the reporting entity is the payment settlement entity, it notes.