Have you read about this upcoming regulation?

In reading my AIPB newsletter I read a very interesting bit of information in the Heads Up area I would like to share here in case you hadn't heard ...

Starting in 2011 the IRS is demanding that credit card processing firms, and others that process similar transations must report gross network transactions of it's clients to the IRS annually.    The IRS is going to use the reports, along with W2s and 1099's to match up reported income.   Now a firm whose gross receipts differ from those reported will be audited and asked to explain the difference. 

Seems the IRS has found another way to look at your overall spending to make sure you are reporting all income.  (IR-2009-106, Reg 139255-08).

At Quicksilver Business Solutions I have always insisted that each individual credit card be reconciled every month, just like bank statements, but now it's become even more important.

I am a member of AIPB (American Institute of Public Bookkeepers) . Their monthly newsletter is always informative and keeps me up to-date on all kinds of accounting and tax information.