Changes to IRS Reporting Regulations for 1099-Misc Tax Year 2011

Shwalt: It is very much the same. The mapping of accounts if you select Show All will allow you to map all. What is of concern that you must take care with is the new reporting, especially if you pay any of your vendors using a credit card.

Laura

What are the notations that QuickBooks recognizes for the credit card/debit card/gift card/PayPal to exclude payments applied to 1099-Misc?  The intuit website that lists the exclusions is down and says “Sorry.  We experienced an error.”

http://support.quickbooks.intuit.com/support/pages/inproducthelp/Core/QB2K12/ContentPackage/Payroll/1099/task_1099_exclude_payments.html

http://support.quickbooks.intuit.com/support/Error.aspx?aspxerrorpath=/support/pages/inproducthelp/Core/QB2K12/ContentPackage/Payroll/1099/popup_1099_exclude_text.html

I keep checking the site above with no luck.

Thanks,

Kathy

I do NOT like the wizzard.  PLEASE give us back the originbal 1099 process!!!??

I agree with you.  At least give us the option of using the previous method...that many of us are used to and can work with!

 Paypal is reporting amounts over 600 paid to anyone, we just got ours

I don't know where you got the 20K from but that is a wrong statement 

Click  solved (thumbs up) if you think it is

 I got it directly from PayPal. Several of our vendors reported that they did NOT receive a 1099-K.

Here's the link

and specifically the section that says:

Will all sellers receive a Form 1099-K?

No. Only sellers who exceed the IRS thresholds will receive Form 1099-K. Sellers exceed the IRS thresholds when they receive over $20,000 USD in gross payment volume for the sale of goods or services AND receive over 200 separate payments for goods or services in the same calendar year.

Thus, my information is NOT incorrect. PayPal seems to clearly be stating that they will only issue a 1099-K for amounts over $20000

We got one from PayPal that says the same thing (greater than 20K).  However, we received one from American Express for less than $20,000.  I think Merchant accounts have a lower threshhold.

Per the IRS website:

The 1099-K is a new IRS information return for reporting electronic financial transactions to improve voluntary tax compliance. You should get a 1099-K by the end of January 2012 if, in 2011 you received payments from:

• merchant card transactions (e.g., debit or credit cards) OR,
   
• in settlement of third party payment networks (e.g., PayPal or Google Checkout) at or above our minimum reporting thresholds
  -gross payments that exceed $20,000, AND
  -more than 200 such transactions.

 OK I stand corrected.

Still the requirement is that as a company you report only 1099 payments above the 600 made by check, cash, barter, and credit card convienence checks

Don' worry about whether the third party handlers will report or not, that is between them and the IRS