It could be that I am a little behind on the tax related water cooler chat, but I recently started hearing about this new 1099-K form. Spurred by my curiosity to know what this new form is all about I hit the web for some research. As with most things related to the IRS there are some very strong opinions about the implementation of this new form and the implications it has on the business community – particularly the small businesses. As we prepare to embrace the 2011 tax adventures, check out the details below to be sure you have a handle on things to come!
The 1099-K form was put into play along with the Housing Assistance Tax Act of 2008 and will be introduced to the tax filing process for the 2011 tax year.
The form will be generated by banks and/or payment processing services. Business owners will simply receive their copy of the form for tax filing.
It appears that the form is being implemented in an effort to better track income streams from credit/debit cards, gift cards and PayPal type services.
A 1099-K form will be required when a merchant has 200+ payment transactions totaling $20,000 or more in a given year.
The form is not yet available for procurement, but will be made available in 2011 along with the usual tax forms. For the curious minds, a sample can be viewed on the IRS website to familiarize yourself with the information and its layout.
For additional information, check out these postings!
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