The Internal Revenue Code 6050W is a new tax law that requires ABC Financial to report the gross amounts of your payment (credit) card and third party network transactions to the Internal Revenue Service.
These new requirements will apply to all credit card transactions beginning January 1, 2011. ABC Financial will provide the IRS, and each client that has reportable credit card transactions, with a 1099K for the year 2011. As a result, all individual clubs are obligated to provide their tax identification number (TIN) and tax-filing name to ABC Financial NO LATER THEN November 18, 2011.
If an individual club fails to provide its TIN OR if the IRS sends notices to the reporting entity (ABC Financial) that there is a discrepancy between the information provided by the merchant and the IRS records, the reporting entity will be required to withhold tax on the merchant’s future funding amounts. Withholding of monies collected will begin December 1st.
In plain English, if you don’t comply with 6050W by providing ABC Financial with the appropriate TIN information, we are required by law to hold credit card payments we collect for you until you do.
To provide us with your proper TIN, please either email Connie Stuckey at firstname.lastname@example.org or call her at 800-622-6290 x1234.
Remember, if we don’t have this information by November 18th of this year, we are REQUIRED BY LAW to hold credit card money we collect for you.