What is Internal Revenue Code (IRC) Section 6050W?

Section 6050W, enacted by the Housing Assistance Tax Act of 2008, requires a payment settlement entity to report payments made to merchants for goods and services in settlement of payment card and third-party payment network transactions.

This new law requires payment settlement entities to report the legal name, address and taxpayer identification number (“TIN”) for each participating merchant, along with the gross amount of the reportable payments to each merchant in settlement of payment card transactions for goods and services.