US Bankcard Services Industry Blog

Monday, May 16, 2011

News Flash: IRS 1099K, Merchants and Tax 2011

Merchant Notice: Merchant acquirers and Processors will begin contacting U.S. merchants regarding 1099K Reporting. These documents will help ensure our merchants are aware of how the new tax regulations imposed by the Housing and Economic Recovery Act of 2008 impacts businesses accepting electronic payment transactions at the point of sale. U.S. businesses must now ensure proper reporting practices are in place to account for electronic payment transactions: • Businesses’ gross transactions are subject to 1099K reporting beginning in January 2011 as a result of the regulations. • Merchant acquirers and Processors are required to report that transaction amount via a 1099K form that will be filed with the IRS in January, 2012. • Merchants will receive a copy of the form just as you receive other tax documentation for your business. Merchant acquirers and Processors will be submitting this information to the IRS via 1099K form and providing a copy for the merchant. Merchants will now be required to submit the 1099K along with their taxes beginning of the 2011 tax year . If you need additional information regarding your fiscal impact you should consult your tax advisor. If you have any general questions on this topic, please contact us at 888-888-8872 or at info@usbsi.com or just come on by.