There has been some confusion with the what is included on the new Form 1099-K form and what belongs elsewhere. Here is an update for clarification on credit card payments that may be useful in your business tax preparation.
On the directions to Form 1099-MISC, the IRS has made it clear that payments made with a credit card or through any third-party payer, are not reported on Form 1099-MISC. The indicated amounts are now reported on Form 1099-K. As a result, if a business pays a service provider with a credit card, debit card, gift card, or electronically via a service, the payment is not included on a 1099-MISC.
Form 1099-K was added in 2011. The form is issued by a credit card company or other third party payer to payees if the payee has more than 200 transactions and more than $20,000 of gross income paid to them. The 1099-K is not issued by either the buyer or seller.
If you have a small business with unresolved tax debt, our experienced professionals can help you resolve your back tax issues and with business tax preparation. For more information about our business tax relief services, visit us today at BusinessTaxPreparation.com. Contact us by phone at (866) 676-9417 or by email at info@businesstaxpreparation.com to receive a free, no obligation consultation.