Description
Learn about the 1099K rules and how it relates to you.In 2012 the Housing Assistance Act of 2008 required payment settlement entities to report to the IRS certain credit card payments received by business owners when they exceed a specific dollar amount and volume. This reporting requirement launched the birth of IRS Form 1099K. This topic examines how Form 1099K is used as a tool by the IRS to track taxpayer compliance which often results in audits. We will discuss specific reporting requirements, underlying customer and merchant networks systems, qualified vs. nonqualified transactions and how to resolve reporting issues.
Date: 2019-06-14 Start Time: End Time:
Learning Objectives
Understanding IRS Form 1099-K
• What Is Form 1099-K and How Is It Used by the IRS?
• What Is a Payment Card?
• What Are Reportable Limits on Transactions?
• What Type of Information Must Be Reported on Form 1099-K?
• IRS Use of Form 1099-K to Support Audits and Reviews
Third Party Settlement Organizations
• Characteristics of Third Party Payment Networks
• Who Is Responsible for Reporting Third Party Network Transactions?
• What Is a Merchant Acquiring Entity?
• How Are Transactions Reported?
• Merchant Acquiring Entity Codes
• Issues Related to Misreporting
• What Is a Payment Settlement Entity?
• How Are Transactions Reported?
• Reporting Requirements for Payment Settlement Entities
• Verification Process
• Filing Deadlines
Reporting Issues and How to Correct Errors Resulting From:
• Incorrect Payment Amounts or Mismatching
• Credit Card Terminal Sharing
• Buying or Selling a Business During the Year
• Multiple Businesses and Sources of Income
• Changing Your Business Entity Structure During the Year
• Receiving Customer Cash Back After Debit Card Purchases
Tax Reporting of Form 1099-K Transactions
• Compliance Reporting
• Sole Proprietors
• Partnerships
• S-Corporations and C Corporations
• Independent Contractors in Receipt of Form 1099-Misc
E. Pete Lewis, MBA, CPA, EA-Lewis & Associates Tax Planning, Inc.
