Businesses won’t have to separately report amounts shown on 1099-Ks on a special line on Schedule C and on Forms 1065, 1120 and 1120-S after all. The IRS has reversed course and waived permanently the separate reporting requirement for reconciling gross receipts with 1099-K forms for 2012 and beyond.
In October 2011 the IRS released guidance on reporting revenues from third-parties such as Visa, American Express and PayPal. These settlement companies were to issue Form 1099-K to businesses and the IRS, documenting all transactions and gross receipts processed throughout the year. This information was to be reported on tax returns beginning with 2012.
If you have any questions regarding this information, please contact our office at (239) 433-5554. Our team of professionals welcomes the opportunity to discuss your specific situation further. You may also visit us on the web at www.markham-norton.com.