Online Sellers Begin Complying with More Stringent IRS Rules March 28, 2011 Joseph Bishop-Henchman Joseph Bishop-Henchman From AuctionBytes.com: As online sellers prepare for the next federal tax cycle, they can look forward to much closer scrutiny of their transactional information. That’s because a sweeping new reporting mandate will take effect for the 2011 tax year, requiring payment-services providers to submit month-by-month transaction totals for individual merchants to the IRS through the new 1099-K form.[…] The IRS set a minimum threshold, requiring payment-service providers to submit the 1099-K form only for merchants with 200 or more transactions in a year that totaled at least $20,000. Both conditions must be met to trigger the reporting requirement. Google and PayPal have updated their terms of service, and others are likely to follow soon. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Center for Legal Reform Individual Income and Payroll Taxes
