New IRS Guidance on Issuing Form 1099s
Posted January 11, 2012
New IRS Guidance on Issuing Form 1099s
The 2011 tax year is officially the first year for the new Form 1099-K, the merchant card reporting form. Under this new requirement, Visa, American Express, PayPal, and similar third party settlement companies are to issue to each merchant, with a copy to the IRS, a report of the gross payments to the merchant for the year.
In anticipation of the change, the IRS modified all business income tax forms (corporation, partnership, and Form 1040 proprietorship schedules), segregating gross receipts into two lines:
- 1a for matching your gross receipts to the amounts reported on the 1099-K
- 1b for remaining business gross receipts.
"This new 1099-K system has implications for businesses that issue other 1099s, such as the Form 1099-MISC for various fees and independent contractor services," says Chris Hesse, a tax partner with CliftonLarsonAllen.
In addition, the IRS is deferring a portion of the 1099-K system for 2011.
Read the full web story to learn about:- The partial deferment for 2011
- The impact on 1099-MISC reporting
- How we can help
See More
