The Retail Industry Leaders Association (RILA) welcomed a decision today by the Internal Revenue Service (IRS) that the agency will relieve retailers and business taxpayers in general, from new reporting requirements related to debit and credit card receipts.
The IRS previously announced that beginning in the 2011 filing year, businesses would be required to reconcile reimbursement information, such as cash back, sales taxes, state and local deposits and other non-income related dollars from the gross receipts. Last October, the IRS delayed implementation of the new requirement until 2012 and today in a letter to RILA, the IRS confirmed that it will not require that the information be separately reported.
According to the IRS letter, “There will be no reconciliation required on the 2012 form, nor do we intend to require reconciliation going forward. Our intention is that the reporting of gross receipts and sales on the 2012 income tax forms will be modeled on the 2010 income tax forms.”
RILA raised concerns about the complexity of complying with the regulations as well as the relevance of the resulting number in a December 2011 letter to the IRS.
“We very pleased that the IRS took the time to listen and work with us to resolve this matter in a satisfactory manner,” said Bill Hughes, senior vice president for government affairs. “This will relieve retailers of an unnecessary burden while still providing the IRS with the tools it needs to ensure tax compliance.”
RILA is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.
IRS Letter: http://www.rila.org/email/IRS1099Kletter.pdf