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Changes to Form 1099 Reporting for 2011
For calendar years beginning after December 31, 2010, the IRS requires taxpayers to exclude from Form 1099-MISC any payments made by credit card, debit card, gift card, or third-party payment network (such as PayPal). Payment card transactions must now be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC. With the 2011 reporting changes in mind and a new year on the horizon, it may be beneficial to assess your method of recording payment card transactions going forward so these payments can be easily identified and excluded from 2012 Form 1099-MISC reporting. The following are links to Form 1099 information on the Internal Revenue Service’s website:
Please contact our office for assistance with any reporting needs. To
comply with the requirements of IRS Circular 230, we must inform
you that the information discussed above is not intended or written
to be used, and cannot be used by the recipient or any other taxpayer,
for the purpose of avoiding penalties that may be imposed under
the Internal Revenue Code or any other applicable tax law, or to
promote, market or recommend to another party any transaction, entity,
investment plan, arrangement or other matter.
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