Tax Gap: Administration Proposal to Require Information Reporting on Merchant Payment Card Reimbursements

Bickley, James M.

Library of Congress. Congressional Research Service.

关键词: Taxation;    Budgets;    Credit cards;    Debit cards;   

RP-ID  :  RL34464
RP-ID  :  RL34464_2008Apr28

美国|英语

来源: UNT Digital Library

【 摘 要 】

The high current and forecast budget deficits as well as pay-as-you-go (PAYGO) procedures have resulted in congressional and executive branch interest in raising additional revenue through proposals for improved tax compliance. The Bush Administration’s FY2009 budget includes a proposal (the proposal) to require each payment card processor to inform the IRS on the net dollar amount paid to reimburse each merchant (i.e., seller) for his payment card receipts in a calendar year. Payment cards consist of both credit cards and debit cards. This report examines theproposal by describing current law, presenting the proposal contained in the FY2009 budget, describing the structure of the payment card industry, analyzing the justifications for the proposal, explaining the criticisms of the proposal, and offering concluding observations.