Home > 1099, Business, Taxes > New 1099-K Form Requirements start in 2011

New 1099-K Form Requirements start in 2011

Starting in 2011, if your business processes credit cards as a form of payment, your credit card processor must issue you a form 1099-K for the gross amount received if you processed more than 200 payments AND for more than $20,000. This is also true for all online retailers including Ebay and Amazon sellers who use PayPal to process their transactions.

If you are an online seller and meet these thresholds, you are more than a “casual seller” and you may consider starting a business entity to protect your identity and for tracking your expenses to offset the revenue that will be reported on your 1099-K. It will be for the gross amount and will not include a reduction for their fees. 

If you feel this affects you, please get advice from your trusted accountant or qualified tax professional.

IRS Article: http://www.irs.gov/govt/fslg/article/0,,id=226894,00.html

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Categories: 1099, Business, Taxes Tags: , , , ,
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  1. January 5, 2011 at 12:59 pm

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