It looks like our friends in DC are at it again. You know that tax gap some of those in Congress are all worried about? The tax gap, which is the difference between what the Treasury Department estimates it should receive in tax revenues and the amount it actually does receive.

It is projected that the majority of taxpayers responsible for the tax gap (57% of them) have been identified as self-employed. One way The Congressional Democrats are looking to go after one more thing in another failed attempt to narrow this so called gap are electronic transactions.

They are proposing that:

credit and debit card issuers will be required to report electronic transactions of business merchants to the IRS. They will also be required to collect and verify Taxpayer Identification Numbers (TINs) and, if they cannot verify a merchant’s TIN, to immediately begin withholding 28% of that merchant’s transactions, which will be remitted to the IRS. Making Life Difficult for the Self Employed

This is a stupid plan. These type of transactions are already well documented. And they are unlikely subjects for willful under-reporting. I would suggest you get in touch with your congressman/congress woman and tell them this is not the correct way to go about helping the U.S. economy everyone is so worried about.

To reach your congressman, us this handy Online Directory for the 110th Congress.