Serious Tax Headache or Opportunity to Explain and Repair
Are you in the 20,000 businesses that have received IRS Notifications of Possible Income Underreporting in recent months. Since 2011, the IRS has required payment processors to file 1099-K forms, a record of all credit card transactions on their systems. I could imagine this would impact many small businesses. Varying from industry averages and how your business model differs from others in your industry could have you justifying your situation to the IRS just as the companies in this CNN Money article.
I think it depends on which side of compliance you are on, whether you view this as an opportunity or a serious tax headache.
To read the full article, go to http://money.cnn.com/2013/08/19/smallbusiness/irs-crackdown/index.html