Treasury, IRS guidance on credit card fee income.The Treasury Department and IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. have issued three guidance items regarding credit card annual fees and late fees. Revenue Ruling 2004-52 holds that credit card annual fees are not interest for federal income tax purposes. For more, visit www.irs.gov/pub/irs-drop/rr-04-52. Revenue Procedure 2004-32 provides automatic consent procedures for taxpayers to change their method of accounting to the Ratable That which can be appraised, assessed, or adjusted through the application of a formula or percentage. Ratable property is that which is taxable or capable of being appraised or assessed. ratable adj. Inclusion Method for Credit Card Annual Fees described in the revenue procedure. Read more at www.irs.gov/pub/irs-drop/rp-04-32. And Rev REV Revolution REV Reverse REV Reverend REV Revision REV Review REV Revised REV Revelations (bible) REV Reversal REV Revolver (Beatles album) REV Reverendo . Proc. 2004-33 provides automatic consent procedures for taxpayers to change their method of accounting and treat these credit card late fees as interest that creates or increases the amount of original issue discount on a pool of credit card loans to which the fees relate. For more information, visit www.irs.gov/pub/irs-drop/rp-04-33. |
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