Under the Tax Equity And Fiscal Responsibility Act of 1982 (TEFRA) trade exchanges (barter companies) are designated as third-party record keepers, the same as credit card companies and banks. And they are required to report to the IRS on the trading activities of their members.

The International Reciprocal Trade Association (IRTA) has been in the forefront of the TEFRA legislation and today’s Executive Director of IRTA, Ron Whitney, is on top of what’s happening in this arena. The IRS appointed Whitney to serve on the Information Reporting Program Advisory Committee (IRPAC), representing the interests of the commercial barter industry.

Whitney reports that the IRPAC did embrace the industry’s non-matching TIN/back-up withholding issue.

For a complete update on third-party record keeping for trade exchanges read: UPDATE

For a barter company (trade exchange) in your area consult the enclosed map: BarterCompanies

This entry was posted on Tuesday, December 11th, 2007 at 11:19 am and is filed under Industry News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.