Retailers: be sure to report all your cash income!

Big news for retailers and restaurants.

The IRS is going to compare your 2011 gross receipts and credit card revenues.  Your credit card processor will be sending you a 1099-K.  This IRS will compare this data with your tax return to determine if the gross receipts fall within an acceptable percentage of all receipts: cash, check and credit card.

This means that if an organization isn’t reporting its cash receipts, and is part of an industry where income averages are well defined (restaurants, personal service companies and most small retailers), it would be a good time to make sure you’re reporting all of the cash you receive.