Piecemeal Solutions to Credit Card Charges and Fees Leave Industry Without Firm Guidance as Credit Card Debt Becomes Major National Problem
Author: John J. Ensminger.
Source: Volume 23, Number 04, Summer 2006 , pp.342-374(33)
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Abstract:
Credit cards have become a major segment of the banking industry, with a high proportion of the country using cards, and thereby paying banks finance charges and penalties. One would assume that the tax treatment of income of an industry of this size would be relatively clear. This, however, has not been the case, and although practices have arisen in the industry and been accepted by the IRS, firm guidance on a number of issues is lacking. The 2005-2006 Priority Guidance Plan includes an item on “the treatment of fees incurred in credit card transactions.” With the exception of one plan, this item has been listed as a priority for guidance since 2001.Keywords:
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