The Internal Revenue Service has a reputation for doggedly pursuing those who don’t pay their taxes. Now they’ve told PayPal, the popular online credit card processor and payment service, to cough up data on offshore credit card use.Why PayPal? The payment giant forayed into the world of online gambling between the years of 2000 and 2001. Some sources claim that the IRS is looking to crack down on improper use of offshore credit card accounts for online gambling during that period. Others aren’t so sure. Some skeptics believe that the IRS will use the data it gains as an excuse to sniff out all kinds of financial indiscretions, including unreported income. Tax professionals have even referred to this summons as a ‘fishing expedition for illegal activity’.
Will the PayPal summons herald the start of a witch hunt in the Age of Technology? Only time will tell. In the meantime, play nice and pay your taxes.
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