Vermont Society of Certified Public Accountants
News
IRS to Provide Transitional Relief to Banks and Other Settlement Entities Required to Issue 1099-K
Jan 1, 2012 —The Internal Revenue Service is providing special transitional relief to banks and other payment settlement entities required to begin reporting payment card and third-party network transactions to the IRS on new Form 1099-K.
By law, reporting is scheduled to begin in early 2012 for payment card and third-party network transactions that occurred in 2011. Details on the special transitional relief and reporting requirements are in these FAQs, and more information on this relief is in Notice 2011-88 and Notice 2011-89.
Basically the backup withholding provisions will not go into effect until 2013 and there is transitional relief from penalties for a section 6050W filer reporting incorrect information on information returns (Form 1099-K)
