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December 19, 2012
New IRS Regulation On Attorneys Receiving Credit Card Payments
A new regulation from the IRS is set to go into effect on
January 1, 2013. The new regulation will affect attorneys that accept debit and
credit cards for payment from clients. Under Section 6050W, credit card
companies must verify and match an attorney’s federal tax ID number and legal
name on the attorney’s merchant account to the attorney’s information on his or
her IRS record. Under the regulation, “an EXACT match is required.” This could
become a problem if an attorney chooses to abbreviate his name on his merchant
account. If this is the case, an attorney might want to consider contacting his credit card processor to change the name on his account to the legal
name that appears on his tax return.
See Mark Mathewson, Accept Credit Card Payments? Beware This New IRS Reg, Illinois L@wyer Now, Dec. 11, 2012.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
December 19, 2012 in Current Affairs, Income Tax, Professional Responsibility | Permalink
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Comments
Thank you for this great information. Do you know of any good places I can get my estate planning done in Minnesota?
Posted by: Maximus Tyler | Dec 19, 2012 4:46:39 PM
Tyler- If you go to the ACTEC website and look for a local attorney listed there it's hard to go wrong.
Posted by: brian j. cohan | Jan 3, 2013 5:15:28 PM
