PayPal Customers Beware – The IRS Is On To You

Posted on 13. Apr, 2006 by in Taxes

justicedept.jpgThe Justice Department, in another show of its over-reaching power, has asked PayPal to turn over customer records as part of a tax-evasion probe. The judge has already issued a John Doe” summons which permits the Internal Revenue Service to obtain information about possible tax fraud by people whose identities are unknown. The request is part of a Justice Department and IRS investigation of possible tax evasion by U.S. taxpayers using credit cards issued by offshore banks. An estimated $40 billion dollars in federal tax revenue is lost every year because of the use of credit cards linked to accounts held in foreign tax havens. If you ask me though I think the IRS would like to get an idea of how many people are selling stuff online and not reporting it…

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