Form 1099-K, people are really talking about this little form (hey, I’m an accountant, we talk about tax forms a lot). For those of you who need some clearing up about who should file a 1099-K, I thought I would jump in and help you out.
Form 1099-K, Merchant Card and Third Party Network Payments, must be filed by a payment settlement entity which, for payments made in settlement of reportable payment transactions for each calendar year. Basically, what the IRS is telling us is, if you have a credit card machine at your office the third party that runs the credit card must send your company a 1099-K at the end of the year. You need to use the 1099-K’s that you receive as part of your revenue.
Wow! I hope that clears it up a bit, these instructions are a bit mind boggling, but some people consider them a good read.
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