aBIZinaBOX – Tech, Financial, GAPS, APPS and Professional Services

Welcome to tax season for 2011 reporting year. The IRS has given us some new twists to an old process.

• The IRS has issued new reporting requirements for tax year 2011 1099-MISC form. These requirements will exclude some forms of payments from the 1099-MISC form that will instead be reported on the new third party form 1099-K.
• Explanation of final regulations published by the IRS on the new payment card reporting requirements can be found here.On August 16, 2010, the IRS issued final regulations (Treasury Decision 9496) related to Internal Revenue Code Section 6050W, which generally requires information reporting on payment card transactions occurring after December 31, 2010. In general, these requirements apply to government entities as well as private businesses.

  Section 6050W, enacted by the Housing Assistance Tax Act of 2008, requires a payment settlement entity to report payments made to merchants for goods and services in settlement of payment card and third-party payment network transactions

• The IRS has added a resource center for third party reporting information which can be found here. The link provides detailed access to Form 1099-K and instructions as well as merchant reporting guidelines.
• Intuit‘s link  tells us that QuickBooks Online is in compliance for tax year 2011.
• Paypal has provided good documentation which applies to merchants that have >$20K in transactions and >200 individual transactions for years beginning after January 1, 2011. You can find the details here
• Google covers the new reporting requirements here.
• Amazon Payments posted their details here. Amazon actually did a really good job of setting up for this and added a link where you can sign up to get your Amazon.com 1099-K using this link.

My sense is that this will have significant impact on our clients, partners and friends in the SaaS community whom are part of the Google Apps Market Place, Salesforce App Exchange, Intuit Partner Program, etc.  If you are impacted by this change and would like to set up a chance to discuss the impact of the rules, click here.

We hope that the above is helpful welcome to 2011 tax season.

This entry was posted on January 3, 2012 at 08:31 and is filed under aBIZinaBOX - Products, Technologies and Services. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.