New form 1099-K produced confusion, here are some answers.
My website is getting a lot of hits with people confused on how to handle new Form 1099-K. Most people don’t know where to make the entry on their tax return. I decided to help and here are some answers to your question.
What is form 1099-K?
Form 1099-K must be sent by all credit card companies and any other companies that received payments for purchases and passed the money to a business or an individual who sold the goods to a consumer. To make this simple, this is a portion of gross receipts that was paid for by credit cards, PayPal, Google Checkout, and other companies that provide similar transactions.
Where do you enter 1099-K information?
Form 1040, individual tax return
On form 1040 you have to make this entry on Schedule C (self employment). Add up all 1099-K amounts and enter the total on Form 1040, Schedule C, » Read more..
More than 200 Actions Taken in Past Week in 23 States
IR-2012-13, Jan. 31, 2012
WASHINGTON – The Internal Revenue Service and the Justice Department today announced the results of a massive national sweep cracking down on suspected identity theft perpetrators as part of a stepped-up effort against refund fraud and identity theft.
Working with the Justice Department’s Tax Division and local U.S. Attorneys’ offices, the nationwide effort targeted 105 people in 23 states. The coast-to-coast effort took place over the last » Read more..
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For tax year 2011, the IRS asks recipients of the Form 1099-K, Merchant Card and Third–Party Network Payments to include the business income from 1099-Ks as part of the aggregate total with other business receipts on their tax returns.
The “What’s New” section in the instructions for Form 1040 Sch. C,Sch. E and Sch. F has information for reporting the income on 2011 tax returns.
Please note: This does not change the requirement that responsible entities file and furnish Forms 1099-K for 2011.
Form 1099-K, Merchant Card and Third Party Network Payments
A payment settlement entity (PSE) must file Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year. A PSE makes a payment in settlement of a reportable payment transaction, that is, any payment card » Read more..