THE NEW 411 FOR REPORTING 2011 1099's

Well it appears the IRS has placed some new regulation in force for businesses who pay their vendors thru a credit card, debit card or PayPal.

The third party payment processing companies will be required to file form 1099-K on your behalf and then what ever you have paid to vendors via check or cash, you will be responsible for filing a 1099-misc.

So what can get complicated is if you paid your vendors with a check and thru PayPal or a debit card or credit card.  You will have to subtract out the PayPal, debit card and credit card payments from the 1099-misc.

Below is an overview notice I received from Intuit, who sells QuickBooks.

Contact me directly if you have any questions or need direction of how to handle for your 2011 finances. d.rosenfelt@cfomadeeasy.com

Overview

Beginning with tax year 2011, the IRS requires you to exclude certain payment types you made to a 1099 vendor on Form 1099-MISC that will be included on third party payment processors such as credit card companies, PayPal etc. on forms 1099-K.