Deep down in last summer's housing rescue bill lies a provision that is already causing heartburn among credit card payment processors and individuals who do a lot of selling on eBay. According to the legislation, beginning in 2011 payment card processors like PayPal must keep tabs on online transactions and notify the IRS when individuals earn more than $20,000. Sure, individuals who use eBay to clean out their garage have little to worry about, and you could argue that eBay Power Sellers should be paying taxes already, but the changes will have major privacy implications and cause regulatory headaches for card processors. "This won't affect people cleaning out their garage, but if you're an eBay Power Seller making more than $20,000 annually, the tax man will know about it," says attorney Zahara Alarakhia of Dallas' Munck Carter. According to the Wall Street Journal, it also applies to intermediary banks that process card payments for restaurants and brick-and-mortar retailers. Congressional tax estimators predict the reporting change will help the IRS collect an additional $9.5 billion in taxes owed by online and traditional businesses over the next 10 years. The payment processors will be required to file a 1099 form for each merchant to the IRS and to the merchant. To speak with Ms. Alarakhia about payment card processing issues, contact Alan Bentrup at 800-559-4534 or alan@androvett.com.