Attention credit-card-accepting merchants of all types: How'd you like to have 28% or more of your total Visa/MC/Amx/Discover deposots withheld by the IRS and not released until you file your 2012 taxes?
No? I thought not. But that's exactly what could happen if your legal business name and TIN on file with your processor don't match with what the IRS has on file. This is no joke, it's Section 6050W of the new IRS
Code. And yes, it affects YOU if you accept electronic payments. If I were you, I'd call my processor TODAY and make sure my legal name and TIN are correct. If you'd like more details, we've posted them
on our blog--see directions in our profile..
I am "bumping" this post because every merchant needs to take heed. I work for a processor that was once owned by BAMS, and we still get referrals from BAMS, and across all our portfolios from a processing standpoint this new requirement is a nightmare. I would not recommend flooding a standard call center with telephone calls. However, pay attention to your mail. Chances are if what your processor has on file is a "mismatch" you would have been notified in writing by now, or in the very near future. If not, check your merchant statement for a "mismatch fee" of some sort. If you get the letter or the fee, what your processor has on file does not match what the IRS has on file. When the IRS grabs the 28% (or more, such as in California where the state is also going to withhold), your processor CANNOT get this money back for you. You will have to get it back from the IRS, and processors are not even sure yet how that part is going to work.
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