IRS releases 2012 Form 1099-K for Payment Card and Third Party Network Transactions
Global Information Reporting & Withholding Newsbrief()
Section 6050W of the Internal Revenue Code ("the Code") and the regulations thereunder require merchant acquiring entities and third-party settlement organizations (referred to collectively as payment settlement entities (PSEs)) to report payments made in settlement of payment card (i.e., credit, debit, etc.) and third-party network transactions. In general, PSEs must report the gross amount of reportable payment transactions, as well as the name, address, and taxpayer identification number (TIN) of the payee to the IRS on Form 1099-K, Payment Card and Third Party Network Transactions, for calendar years beginning January 1, 2011. The IRS on June 28 released the 2012 Form 1099-K, which includes several modifications from the 2011 version.