Category:1099-K

From TaxAlmanac

This category page will contain discussions that have been manually categorized as dealing with 1099-K issues. Not all relevant discussions get categorized, so please also use the search box; for best results search on "1099-K" including the quotes, otherwise the hyphen may cause the search engine to report invalid results. You may also find results under "1099K" without the hyphen, or "1099 K" with a space instead of the hyphen.

HR 3221, Housing Assistance Tax Act of 2008

Section 3191 of this act adds Sec. 6050W to the code. This resulted in the creation of a new form, the 1099-K, for reporting of credit card and third-party processing payments. The 1099-K is to be filed by payment settlement entities (the credit card companies/third-party processers), for payees (card holders, etc.) with payments exceeding $20,000 per year and more than 200 transactions per year. The reporting requirement starts with 2011 payments. There are also new requirements for backup withholding.

Related offsite articles, regs, notices

• REG-139255-08
• Notice 2011-42 - payments made by third party settlement organizations (TPSO) are reportable and potentially subject to backup withholding.
• Notice 2011-71 - guidance about obligations of payment settlement entities making payments to an offshore account.
• Notice 2011-78 - Non-application of Section 6050W to certain insurance arrangements
• American Housing Rescue and Foreclosure Prevention Act of 2008 - overview; links to legislation and technical analysis
• IRS article - deferral to tax year 2012 for requirement to report 1099-K items separately on tax returns (link may have expired)
• Form 1099-K Payment Card and Third Party Network Transactions
• General FAQs on Payment Card and Third Party Network Transactions
• New Notices Related to Form 1099-K
• clarification of Sch C instructions (2011) w/r/t Confusion about Schedule C Line 2, "Returns and Allowances" (particularly for 2011 tax year)

Examples of discussions on the topic, with short recaps

• Discussion:1099-K question (regarding correspondence from the IRS/reconciliation of 1099-K)
• Discussion:IRS Letter 5036 re: Form 1099-K (more on the new correspondence from the IRS)
• Discussion:1099-K Cell Phone Store (gets into various reconciling items like gross receipts, third party collections, etc.)
• Discussion:PayPal Account Used By Friend
• Discussion:Expense Classification (more about third party collections/agents)
• Discussion:IRS Gets it Wrong with Form 1099K (tips, etc.)
• Discussion:1099-K..notice_that_AmEx_will_use_them_starting_2011 (mostly old, but still some relevant parts)

Discussions that have been categorized here

(Be sure to search, too, as not all relevant discussions will have been categorized - that's a manual process.)