Internal Revenue Bulletin: 2004-31
August 2, 2004
Final regulations under section 3406 of the Code provide guidance on the information reporting and backup withholding requirements for payment card transactions made through a Qualified Payment Card Agent (QPCA). These regulations provide a limited exception to backup withholding for reportable payments made through a QPCA.
This procedure provides the requirements for a payment card organization to request and obtain an IRS determination that it is a Qualified Payment Card Agent (QPCA) for purposes of the related final regulations under sections 3406 and 6724 of the Code that address the information reporting and backup withholding requirements for payment card transactions.
This document establishes an optional procedure for payors who make payments in the course of their trade or business through payment cards to determine whether the payments are reportable under sections 6041 and 6041A of the Code and the regulations thereunder. This procedure classifies businesses by Merchant Category Codes (MCCs), or other similar codes, according to whether they predominantly furnish services or predominantly provide goods.
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