All Credit Card Transactions To Be Reported to IRS

All Credit Card Transactions To Be Reported to IRS

www.campaignforliberty.com

Yesterday Congress passed a housing bailout bill by a vote of 272 to 152. Here is a typical MSM story about the bill from the LA Times that lauds the importance of these “sweeping measures” that will “stave off foreclosure for 400,000 or more homeowners,” and allow the Treasury to “bolster confidence in Fannie and Freddie” by allowing the government to “temporarily increase its lending” and “buy their stock.” Couched in these terms, it probably sounds good to most Americans.

(visit the link for the full news article)

Great, just great

This is horrible news

Things are moving very fast to a surveillance state more than ever

www.campaignforliberty.com
(visit the link for the full news article)

Since this provision of the bill is really about creating revenue to pay for the bailout, what's happening here is that the income from INTERNET SALES is going to be tracked by the IRS through your credit card transactions.

I think Ron Paul is being a bit misleading stating that "every credit card transaction will now be reported to the IRS" on his website. This could be misinterpretted by many.

The bill requires credit card processors to report the annual gross dollar amount of credit card transactions for each of their merchants to the IRS. No individual transactions, items purchased, names, credit card numbers, etc will be reported to the IRS. As far as I can tell, there are no privacy or identity implications introduced by this bill. It's just a way to get businesses (Internet or otherwise) to pay their taxes accurately.

Payment settlement entities, including merchant acquiring banks and third party settlement organizations, or third party payment facilitators acting on their behalf, will be required to report the annual gross amount of reportable transactions to the IRS and to the participating payee

Senate Bill Summary


[edit on 24-7-2008 by Zarniwoop]

Good video here. RP explains what the government does not want you to know.

Good video indeed

Here’s what RP said about the credit card portion of the Bill in his video

“All credit card transactions will be reported to the IRS
…More regulations, more reporting, more surveillance
…More surveillance of every single thing you do in life
…Everything you buy and sell on your credit card…every transaction will be reported to the IRS.”

I looked at the bill located here

Entire Bill

The section relevant to this thread starts on page 615

Here is the text from the bill to compare to RP’s commentary:

13 ‘‘(a) IN GENERAL.—Each payment settlement entity
14 shall make a return for each calendar year setting forth—
15 ‘‘(1) the name, address, and TIN of each par
16 ticipating payee to whom one or more payments in
17 settlement of reportable transactions are made, and
18 ‘‘(2) the gross amount of the reportable trans
19 actions with respect to each such participating
20 payee.

So… payment processors are required to furnish to the IRS the merchant's contact information and the gross amount of payments made to the merchant.

I agree with a lot of things RP has to say. However, in this case, I don't think he read the bill.

reply to post by Zarniwoop


You are right, this bill does not report the everyday transaction, but my question is, how long before they do go there? If the IRS can prove they can handle this influx of new data, what is to stop the IRS from wanting more details in the name of catching people not paying the proper amount of taxes?

Even the notion of this type of thing ever happening makes me glad that I use cash almost exclusively now.

I think this bill pretty much gives the IRS everything they need to catch merchants not paying taxes. They don't need information regarding who made the purchases. Although, I can imagine other gov agencies wanting purchase details for profiling in the name of preventing terrorism.

More info on ATS threads here:

Inside Housing Bailout Bill: Track and Monitor All Credit Card Data

and here:

Senate Housing Bill Requires eBay, Amazon, Google, and All Credit Card Companies to Report Transactions to the Government

IS THIS 1932 BERLIN or WHAT??????

Where is the outrage?

Where is the media?

Buy and hold PM's

Abolish the FED and stiff the greedy banker shylocks and their unpayable debt THEY created from thin air.

These ARE the warmongers responsible for mankind's bloodiest century and the global imperilism they financed ALL sides of.

Oh, as mentioned in another thread, it looks like there's a clause in there now that makes these payments (such as to an individual via Ebay or Paypal) 'other reportable income', and thus subject to IRS backup withholding. Meaning, Paypal would take a slice of the money, at a certain tax rate, and give it to the IRS directly, then issue you a 1099 at the end of the year which you file along with your tax return.

Analysis from an actual tax lawyer would be helpful here! Wading through the tax code makes my brain hurt.

reply to post by Anonymous ATS


The outrage? You handed your rights to the Bush Admin on a silver platter, willingly I might add.

Of course in retrospect we realise the War on Terror, Osama, Al-Qaeda, Islam, Iraq; it was all one big charade to scare us into giving up everything we had like a stick up but nevertheless, don't complain, the Republicans outwitted everyone.

And now your paying the price and realising the US is just a few steps away from 1984, Bush-style.

Pretty soon you won't be able to a take a dump without Congress knowing.
Another reason I'm glad I'm not in the US.

[edit on 27/7/08 by The Godfather of Conspira]

Originally posted by The Godfather of Conspira
reply to post by Anonymous ATS

 

The outrage? We handed our rights to the Bush Admin on a silver platter, willingly I might add.

Of course in retrospect we realise the War on Terror, Osama, Al-Qaeda, Islam, Iraq; it was all one big charade to scare us into giving up everything we had like a stick up but nevertheless, don't complain, the Republicans outwitted everyone.

And now we're paying the price and realising we're just a few steps away from 1984, Bush-style.

Pretty soon you won't be able to a take a dump without Congress knowing.
Another I'm glad I'm not in the US.

People we need to get over this whole idea the "Republicans & Bush" outwitted us. The fact is ALL of them did. Both the Democrats and the Republicans. This is the truth and as long as people keep buying into that one party is better than they other and come fully to the realization they are both of the same skin. They just wear different disguises. The fact is the Dems could of done a lot since 2006 or at least TRIED to do something and nothing has been done. In fact the Dems with the passing of the wiretapping laws and what not have made this situation even worse. 2 Party crime family and all of them are laughing all the way to the bank. God Bless America

Well, this is crappy. Thanks for posting the Ron Paul video.

This bill is really not far away from them demanding access to each item we buy and sell. I love that we seem to be gravitating towards a cash-less system. This information is valuable to them, in more ways than just taxing purchases.

I hope this helps them to identify more of us as "enemy combatants", as they so desperately want.

How much more are we going to give them? How much more is there still left to take?

Meaning, Paypal would take a slice of the money, at a certain tax rate, and give it to the IRS directly, then issue you a 1099 at the end of the year which you file along with your tax return.

I don't think that is the case at all. Paypal would just have to report the gross amount of payments made to each payee. It's up to the payee to report income appropriately to the IRS based on the tax code. Now, if there is a huge descrepancy between reported income and what paypal reported, there could be reason for an audit.

I don't like giving more than a third of my income to the government, but why should someone making a living on ebay be exempt from paying taxes

reply to post by Zarniwoop


Nah, the new legislation, as well as mandating this reporting, explicitly adds the reported information to the Tax Code list of 'other reportable payments', which already-existing law makes subject to backup withholding requirements. See 26USC3406.

So, does anyone know if Paypal and other payment processors need to report all past transactions on an account? Or, only everything starting today?

And, is there any free country left to live in anymore? Preferably an English-speaking one, that isn't a third world, and non-restricted internet access?? Lol

reply to post by Zarniwoop


Nice job!

I hope more read your posts to understand exactly what was in this legislation.

For a lot of people , selling on ebay is the same as having a yard sale. We do not report what we sell at a yard sale, but to do it online now will require that.

We paid a tax when we bought the item, now we have to pay yet another one when we sell again. Whats wrong with that picture.