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Subject:  Re: IRS Letter Charge Sales Date:  8/15/2013  11:17 AM
Author:  Wradical Number:  119004 of 123001

You all probably knew this was coming, I didn't. Have you seen anyone that has received a letter?

I have not. To my knowledge none of our clients have received it, at least that they've mentioned. I saw an article about it a day or so ago in the Wall St. Journal. They also mentioned the form that's requested to be returned, and I'm equally curious about that.

If you (generic you) are reporting all your sales, I don't see a problem.

The WSJ article mentioned that possible mismatches would occur with businesses that do all, or virtually all, of the sales and/or collections over the internet, where payments are received by credit cards and/or Paypal. (Payment processors such as Paypal are also subject to 1099-K reporting.)

AND if you're in that situation, it could be that the credit cards, Paypal, etc. will exceed 100% of your reportable income, if they include sales taxes and/or shipping or handling charges, and that depends on the businesses' accounting