Our bookkeeper informed us last month that the government wants us to keep track
of our credit card sales. Does anyone else have to do this? We are located in illinois
Yes and no. According to my CPA accountant, starting in tax year 2011, you were to report cash and credit card sales separately. However, the IRS has backed off on this rule(due to lots of small business complaints) and likely won’t enforce it this year. What the IRS is doing is they are requiring credit card companies to 1099 businesses, and then comparing these numbers to the businesses credit card sales figures. They are especially scrutinizing restaurants with this program. The problem is that the 1099 numbers from CC companies includes tips and tax so the numbers aren’t so easily compared. My CPA said that his tax software company sent out a memo telling him to disregard the separation of cash from CC sales for tax year 2011. The separation of sales may be a firm requirement next year. Disclaimer: All I know is what I’ve been told.
I saw the report from our CC processor but my accountant said he did not need it.
From what i am hearing they want us to track our cash sales and our cc sales
it is not mandatory yet but will be in 2014