Credit Card Payments to be Reported to the IRS Beginning 2011 Income from credit and debit card payments to be reported to IRS

Income received through credit and debit card transactions will be reported to the Internal Revenue Service starting in the year 2011.
Banks and merchant services will report annual gross payments processed by credit or debit cards to the IRS and to merchants. There's no word yet on the format these information reports will take. I suspect the reports will likely resemble the 1099 forms that report certain types of income. The law does not take effect until January 1, 2011, so there will be plenty of time for payment processors and business owners to prepare for this new development.