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Tax News You Can Use . . .
Important!
New 1099-K Form for Tax Year 2011
For tax year 2011, the IRS requires that all credit card companies are to report on Form 1099-K any payments made to qualifying Vendors using the same guidelines for issuing 1099-MISC. The IRS agrees that there are several issues complicating this reporting and will hopefully will be ironed out by the end of 2012. Given this, there will not actually be any reporting of this information on your 2011 income tax returns, but the requirement for the 1099-K reporting remains the same.
If you paid a vendor using your credit card in 2011, you should not issue them a 1099-MISC for the amount paid with the credit card (only include the non-credit card payments). This is due to the fact that the credit card company will also be reporting this same amount on a 1099-K. If you use QuickBooks 2012, there is a 1099 Wizard that will not include payments made using a credit card. This will only work if you properly allocated the payment to a credit card.
If you need help with your 2011 1099 Form’s, please let us know as soon as possible.
