What is Form 1099-K and why should I care?

You may receive for the first time for tax year 2011 Form 1099-K from your merchant account provider or other third party payment processors such as Paypal for amounts customers paid to you through their network.

You should add up all Form Form 1099-MISC and Form 1099-K amounts and make sure that total amount is equal to or less than the gross sales amount you are reporting on your tax return, otherwise you are guaranteed an inquiry and/or audit from the IRS and your stat income tax authority, if applicable.

If you receive a Form 1099 that is incorrect, you should go back to the payer and request that they provide you with a corrected form and that they adjust the amount with the IRS if it has been already filed with them.

We can issue your Form 1099’s and correct forms that were erronously generated and filed. Contact us today.