Wednesday, December 19, 2012
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.