IRS Targets Small Retailers Who Accept PayPal and Credit Cards

PayPal, credit card processors and other financial institutions began reporting sellers’ monthly sales transactions to the IRS as part of a new law, and now the IRS is using that information to target small retailers. According to The Wall Street Journal, the U.S. Internal Revenue Service sent 20,000 letters to small businesses based on the new data questioning whether they were under-reporting their business income. And it reports that tax accountants are expecting the program to expand.