Tax Information Reporting Requirements

As part of the recent health care reform bill, there will be additional informational reporting required by businesses.  

Beginning January 1, 2012, all payments of $600 or more to a single payee (with the exception of a tax-exempt corporation) will require the filing of an information return. This applies to all payments made after December 31, 2011. 

To help minimize the administrative burden of the new 1099-Misc reporting regulations, transactions using credit or debit cards would not be included in the new reporting requirements. This information would already be reported to the IRS through the 1099-K, a form credit card payment processors will be required to issue to merchants who have at least 200 payment transactions annually that are over $20,000. The 1099-K requirements will be effective beginning January 1, 2011.

More information will become available as we near the 2011 deadline. 

Please contact us if you have any further questions.

Disclaimer: 

These articles are intended to provide resources for the tax and accounting needs of small businesses and individuals. The information contained in this Website is intended to provide general information on matters of interest in the areas of tax and accounting and should not be acted upon in your specific situation without further details and/or professional assistance. Users are encouraged to contact us regarding specific situations.