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Vital Signs: New IRS Reporting & What It Means for You - PPA Today

Vital Signs: New IRS Reporting & What It Means for You

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The words "charge it" could soon take on a new meaning if you're a business owner. If you take even a single credit card payment for your photography services, consider giving your payment processor a call during this next year.

Why? Let's take a trip through the perfect client session and sale. A family books their annual portrait session. The session goes wonderfully and not only do they purchase a group shot, but they also love all of the other images you captured and want gallery wraps, albums and more! When it's time to pay, they pull out a credit card. You happily accept their card because even though you are subject to the normal monthly or annual fee assessed by your credit card processor, it's worth it!

But what if you encounter a speed bump? What if you later receive notification from your credit card processing company that they are required to hold 28% of your gross monthly transactions? What went wrong?

It's possible that your tax ID name and number don't match exactly with what the Internal Revenue Service (IRS) has on file. It does happen! And if that is the case starting January 1, 2013, the processor will have to hold that percentage for the IRS until the proper information is secured. On top of that, the 28% of your hard-earned session or print fees will not be refunded until the following year as a tax credit.

Read the complete article here.


About this Entry

This page contains a single entry by Professional Photographers of America (PPA) published on December 8, 2011 6:12 PM.

Tamron Announces The 18-200MM F/3.5-6.3 DI III VC (Model B011) Lens was the previous entry in this blog.

Photo Pie Showcasing New, Realistic Backdrops at Imaging USA is the next entry in this blog.

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