Do you report merchant revenue to the IRS?

Yes, we do. All credit card processors and sales organization are required to report merchants’ gross sales amount from settled transactions (Visa, MasterCard, Discover, PIN debit, etc).

The Internal Service Revenue Code Section 6050W which was enacted by the Housing and Economic Recovery Act of 2008 mandates this reporting for the calendar year of 2011, which will require forms to be filed in January 2012 with the IRS. Per the IRS’s definition, gross sales amount means the “total dollar amount of total reportable payment transactions for each participating payee without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts or any other amount.” (www.irs.gov) The dollar amount of each transaction is determined on the date of the transaction.