The Internal Revenue Service (IRS) issued final regulations requiring that, starting with transactions in calendar year 2011, the gross amount of payment card transactions be reported annually to merchants and the IRS. These final regulations contain rules to implement reporting of credit card, debit card and similar transactions. Beginning in January 2012, every payment settlement entity will file a 1099-K form with the IRS reporting the gross amount of each merchant’s card transactions for the 2011 year, as well as provide a corresponding statement to each merchant. The new regulations require that the merchant’s Taxpayer Identification Number (TIN) and legal name, as listed in its 1099-K, match what is on file with the IRS. If a merchant fails to provide its TIN, or if there is a discrepancy between the TIN and/or legal name the merchant previously provided and the TIN and/or legal name on file with the IRS, then the IRS may require the reporting entity to withhold a portion of the merchant’s future payments from card transactions (the withholding rate is currently set at 28%). This withholding provision goes into effect for payments starting in 2013.