Friday, September 9, 2011
So You Don't Claim EVERY Online Transaction? Well 2011 Just Changed That
According to Ecommercebytes.com: Online Sellers' Payment Transactions will now be tracked by the IRS.
"Internet sellers who don't report their sales will no longer be under the radar. Starting next year, any bank or other payment settlement company that processes credit cards, debit cards, and electronic payments such as PayPal will have to issue information returns telling the IRS what merchants receive. The new returns are Form 1099-K, Merchant Card and Third-Party Payments." ...go here to read the complete article
More info here, please read on: ...starting with transactions in calendar year 2011...
"WASHINGTON — The Internal Revenue Service today issued proposed regulations under a new statute requiring that, starting with transactions in calendar year 2011, the gross amount of payment card and third-party network transactions be reported annually to participating merchants and the IRS. The provision was enacted as part of the Housing Assistance Tax Act of 2008 and is designed to improve voluntary tax compliance by business taxpayers and help the IRS determine whether their tax returns are correct and complete." ... go here to read this article on IRS.gov
Better to know now then next year, right?