April 28, 2008
IRS Asks PayPal to Cough Up Offshore Credit Cards
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According to Gambling911, payment processing firm PayPal has been summoned by the US Internal Revenue Service requiring them to produce various account records related to the use of offshore credit cards.
The summons relates to the IRS’ offshore compliance program in which the IRS has sought information about offshore credit card accounts from a number of companies.
While PayPal "values privacy", they feel "obligated to turn over the requested data" to the United States District Court for the Northern District of California to provide information to the IRS.
Such information will be provided no later than April 29, 2008.
The summons and court order both issue from the United States District Court in an action entitled: In The Matters of the Tax Liabilities of John Does, Case No. CV-05-04167-JW.
It was not immediately known how online gambling (an industry based off US shores) has factored into this matter, or even if it factors in to the investigation. PayPal operated within the online gambling sector for only a brief time between 2000 and 2001.
"In my opinion this is a huge breach of personal privacy - they should not be allowed to comb through citizens' accounts on a fishing expedition for illegal activity," one tax consultant told Gambling911.com, asking to remain anonymous. "I have a feeling, that while they were only in the gambling industry for a year - information obtained from this sweep could be used to nail a lot of people on unclaimed income."
[gambling911]
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