tag:blogger.com,1999:blog-6318055043707993918.post1516722261786736950..comments2024-02-20T02:12:18.090-05:00Comments on THE WANDERING TAX PRO: THE NEW FORM 1099-K CREATES NEW PROBLEMSRobert D Flachhttp://www.blogger.com/profile/06034127763662917220noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-6318055043707993918.post-50332306665559766162011-11-27T04:05:32.216-05:002011-11-27T04:05:32.216-05:00Thank you for answering Robert. Paypal tranfers ar...Thank you for answering Robert. Paypal tranfers are made through an ACH when being transfered into a bank account. Not being a tax pro myself, from the statement below, I read it as a PSE to be a bank,and they would issue the 1099k even if it's a third party like Paypal. Or am I just confused in thinking this or reading it the wrong way? This is from the IRS 1099k instruction link.<br /><br />"A payment settlement entity (PSE) must file Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year. A PSE makes a payment in settlement of a reportable payment transaction, that is, any payment card or third party network transaction, if the PSE submits the instruction to transfer funds to the account of the participating payee to settle the reportable payment transaction."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-34576004490363572252011-11-25T08:12:07.750-05:002011-11-25T08:12:07.750-05:00Anon-
OOPS! The comment above yours was incorrec...Anon-<br /><br />OOPS! The comment above yours was incorrect.<br /><br />As for your scenarios - <br /><br />Banks only report on Form 1099-K money received via credit or debit card charges. I do believe money transferred in from PayPal is done via a wire transfer and not through a credit or debit card, and should not be reported on a Form 1099-K by the bank.<br /><br />TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-11832955014701378162011-11-25T00:43:30.301-05:002011-11-25T00:43:30.301-05:00Hello Robert, I was quoting the post above me. I r...Hello Robert, I was quoting the post above me. I realize this wasn't your quote. One question I have about 1099k is if a person uses a third party processor like Paypal, for example, a person has money in their Paypal account from sales. That merchant keeps the funds in their Paypal account for a few weeks or months and then decides to transfer it to their bank account. Does the bank now consider this a sales transaction and the bank will now send a 1099k even if that person has not reached the thresholds from Paypal to receive a 1099k?<br /> Also, if someone were to open a new Paypal account in 2011, Paypal would have to verify the persons bank account by adding .21(cents) to that bank account. As silly as it sounds, would the bank see that as a transaction and send a 1099k just for a .21 transfer? I only ask because there is no threshold on transactions with a bank.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-60653610619824988082011-11-24T08:04:42.346-05:002011-11-24T08:04:42.346-05:00Anon-
The quote is not from my post. What are you...Anon-<br /><br />The quote is not from my post. What are you quoting? <br /><br />It will be an issue on the 2011 Schedules C, F, and E.<br /><br />The instructions for the 1099-K are at http://www.irs.gov/instructions/i1099k/ar02.html#d0e181.<br /><br />TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-24107509462368598402011-11-24T07:08:11.010-05:002011-11-24T07:08:11.010-05:00So, if I read what you said correctly, the 1099k i...So, if I read what you said correctly, the 1099k is not an issue for business year 2011? Is because all of the kinks haven't been worked out yet? Or am I reading this wrong?<br /><br />"Not going to be a problem until 2012. An IRS about-face this AM will have you put zero on the 1099-K line for 2011.Still a problem for 2012"Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-42804164257981965292011-10-24T17:54:16.672-04:002011-10-24T17:54:16.672-04:00Not going to be a problem until 2012. An IRS abou...Not going to be a problem until 2012. An IRS about-face this AM will have you put zero on the 1099-K line for 2011.<br /><br />Still a problem for 2012.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-92018727396537392172011-10-24T13:31:36.693-04:002011-10-24T13:31:36.693-04:00To Tom -
I agree with your truism.
And how a...To Tom -<br /><br />I agree with your truism. <br /><br />And how about - "If it is broke, but can be fixed, Congress will make sure it ends up on the garbage heap."<br /><br />To the other RF -<br /><br />Thanks for the word. <br /><br />I agree with your "unfortunately", and would add that unfortunately few tax preparers, and hardly any taxpayers, actually read the instructions for an ongoing form. So the result will undoubtedly be problems.<br /><br />TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-69546626216562668942011-10-24T12:22:05.286-04:002011-10-24T12:22:05.286-04:00The new instructions for Form 1099-MISC state that...The new instructions for Form 1099-MISC state that payments made by credit cards are <i>not</i> supposed to be included on Form 1099-MISC. Unfortunately, most businesses don't have the ability to separate these out so this is yet another potential issue with the new Form 1099-K.Russell Foxhttp://taxabletalk.comnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-25450691378462156352011-10-24T12:06:10.007-04:002011-10-24T12:06:10.007-04:00Like I always tell people - "If it ain't ...Like I always tell people - "If it ain't broke, the government will fix it until it is"Tomhttps://www.blogger.com/profile/16406674623634106214noreply@blogger.com