An analysis of the revenue generated by intermediaries is essential to determining the viability of the service.
These revenue sources are generally considered “non-taxable” under IRS rules, but this analysis will focus on revenue generated through intermediaries, because that’s what we want to focus on.
The IRS is the primary enforcement agency for intermediary income taxes.
This means that if a company receives tax refunds or credits through a tax intermediary, it can’t avoid paying tax on those income.
In order to avoid the burden of paying taxes on those profits, companies can rely on intermediaries to help them collect tax.
For example, if you have a company that sells goods online, you could use a third-party intermediary to collect taxes on sales made through the online retailer.
If a company uses an intermediary, you can use it to collect sales taxes on that income.