Always Provide Correct Tax Information to your Credit Card Processor

In 2008, IRS 6050 mandate made it certain that every year all credit card processors report their merchant processing revenues to the IRS. This mandate has been put into place to ensure merchants don’t evade paying taxes or dodge payable taxes.  It’s a new way of keeping the merchant from using their own funds with the credit card processor, if they’re found to have evaded taxes. 

Your credit card processor will not release your payment till your taxes have been cleared. And this has been mandated by IRS.

If next time you receive a notice from your service provider asking for your TIN number and other information, don’t ignore it. Provide a correct TIN number and corporate name

It is vital to provide your credit card processor revised tax information. In case, you tamper with it, the credit card processor is liable for withholding your money and not releasing it.

You can use the W9 form filled with accurate information to avoid detection of a mismatch of TIN number.  

For this thing, you need to have exact information such as the TIN registration and other details that you used for filling taxes. If the information filled by you mismatches the actual details, the form will be rejected. This is because the IRS doesn’t follow any verification system for a look up. 

If you feel uncertain about the details of your TIN, contact IRS for accurate information. Last of all do ensure that all this information is correctly provided to the credit card processor to avoid money seizing.  

 

High risk merchant account holders need to be more careful, because their business is already keeping them under vigil. Tax evasions could not only hold your money, but also get your account cancelled.