Saturday, October 29, 2011
I am confused.
According to the IRS “e-News for Tax Professionals” Issue 2011-42 that I just received via email (highlight is mine)-
“The IRS 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. But under new guidance, they will not have to begin reporting until 2013. 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.”
I have not found anything in a quick review of the referenced FAQs or Notices that reporting is postponed until 2013.
Under the FAQs it states–
“Information reporting for payment card and third party network transactions are due to the IRS by Feb. 28 (March 31, if filed electronically), of the year following the transactions. The first Forms 1099-K will be due for calendar year 2011, and must be submitted to the IRS by Feb. 28, 2012 (March 31, 2012 if filed electronically).”
And the notices involve relief from back-up withholding and penalties for reporting incorrect information.
I have found nothing else to suggest that the requirement has been postponed. So it seems the IRS “misspoke”.