Merchant Category Code Neutrality Act

Bill: 118-s-898
Sponsor: full_name: Sen. Thune, John [R-SD]
Introduced: 2023-03-21
Policy area: Taxation
Latest action: action_date: 2023-03-21
text: Read twice and referred to the Committee on Finance. (text: CR S861-862)

Summaries:
action_date: 2023-03-21
action_desc: Introduced in Senate
text: <p> <strong>Merchant Category Code Neutrality Act </strong></p> <p>This bill prohibits the Internal Revenue Service from auditing a taxpayer based primarily on the Merchant Category Codes, or other similar codes, used to classify the goods or services provided by the taxpayer's business. The bill defines <em>Merchant Category Code</em> to mean classification codes assigned by payment card organizations to merchants or payees that accept their payment cards to classify the goods or services provided or furnished by a merchant or payee.</p>

tv_txt: II 118th CONGRESS 1st Session S. 898 IN THE SENATE OF THE UNITED STATES March 21, 2023 Mr. Thune (for himself, Mrs. Blackburn , Mr. Cassidy , Mr. Crapo , Mr. Daines , Mr. Lankford , and Mr. Tillis ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to prohibit audits based on Merchant Category Codes.

1. Short title This Act may be cited as the Merchant Category Code Neutrality Act . 2. Prohibition on audits based on merchant category codes Section 7602 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (g) Prohibition of audits based on merchant category codes (1) In general The Secretary shall not take any action described in paragraph (1), (2), or (3) of subsection (a) based primarily on the Merchant Category Codes, or other similar codes, used to classify the goods or services provided or furnished by the business of the respective taxpayer. (2) Annual report For each taxable year, the Secretary shall issue a public report providing a tally of each Merchant Category Code for any action described in paragraph (1), (2), or (3) of subsection (a) initiated in such year. (3) Merchant Category Code The term Merchant Category Code means classification codes assigned by payment card organizations to merchants or payees that accept its payment cards to classify the goods or services provided or furnished by a merchant or payee. .