Online Sellers Begin Complying with More Stringent IRS Rules
March 28, 2011
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.