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IRS Reporting Fee

(6 posts)

  1. Networx

    member
    Joined: Oct '09
    Posts: 11

    Reputation:20
     

    My merchant also just sent out a notice about an "IRS Reporting Fee" (or "IRS Filing Fee") which supposedly will add a fee to my merchant account statement every month or year ($99/ year), similar to the way the "PCI compliance fee" did.

    Are you kidding me?

    Folks, all this regulation requires merchant account providers to do is print out W2's once a year. This can be done for under $5 per merchant. For them to charge 2000% of this cost is ludicrous.

    For anyone in the same boat, call your merchant and protest!

    Posted 11 months ago #


  2. Posted 11 months ago

  3. Anonymous



    My merchant, UBC, just sent out a notice about this. They're calling it an "IRS Processing Validation Charge" and are charging $27.95 3x/ year (total = $84).

    Why the convoluted charging scheme? Probably because $27.95 doesn't sound as bad as $84. They also claim that "while many of our competitors are charging over a hundred dollars or more for this mandatory validation, our position is to charge as little as possible and split up that expense to minimize the financial impact to our valued
    merchant relationships."

    What a crock! If you have a merchant account with UBC or anyone else charging this IRS reporting fee, call in and complain! The PCI compliance fee was removed after a while, why shouldn't this one be as well.

    Posted 11 months ago #

  4. Anonymous



    Just called in to UBC and gave them $hit about this new fee. She said it's not just a one-time filing, but rather a quarterly "coordination" process with the IRS that's a lot more than filing. I find that hard to believe as I doubt the IRS is staffing up anyone on their end of the "coordination."

    In the end, it's just paperwork, and this is just one more "junk fee" merchants can use to squeeze you.

    Posted 11 months ago #

  5. Anonymous



    Get it adjusted, we did!

    Posted 11 months ago #

  6. Anonymous



    How can you make a blanket statement. There is more then
    meets the eye concerning the costs of any service. What
    about the rest of the costs involved. In my humble opinion,
    web sites like these are for those who just want to vent.
    The problem is that it can be very misleading.

    Posted 11 months ago #

  7. Anonymous



    While the cost to file is only a few bucks, processors now have to set up new divisions and infrastructure to handle merchant accounts whos business names don't match up with their social or EIN. Those merchants will have 28% of their batches held. Because of that, processors have a tremendous cost of ensuring that merchants match up and correcting mismatches with W9 forms. Occaisionally these accounts have to do ownership changes or reapply. It is a headache and a cost for the processor and costs money.

    Posted 10 months ago #

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