Friday, January 21, 2011

Business Credit Card Transactions Now Reported on a 1099

Starting in 2011, credit card companies will begin issuing a new type of Form 1099 (Form 1099-K) to some businesses and individuals.  The 1099-K will detail, month-by-month, the amount of income the business received from credit card transactions.  It will also apply to debit card transactions, and to payments processed by third-party providers such as Pay Pal.

Form 1099-K will only be issued to business or individuals who have at least 200 transactions and who receive at least $20,000 from those transactions.  The goal with these thresholds is to avoid having a 1099-K issued to someone who, for example, sells things casually on e-Bay.

View a draft of Form 1099-K at the IRS website.

No comments:

Post a Comment