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Accounting Services, Inc.

1099-K: IRS Compliance Program

IRS launches compliance program for Form 1099-K

The IRS has announced a Form 1099-K compliance program in which it will send 20,000 notices to business taxpayers to make sure they are properly reporting their income and that the merchant card data received by the government is accurate. The agency will also be sending notices to business clients regarding mismatches of Form 1099-K information.

This means that merchants doing credit card sales (Amazon, PayPal, Internet) must be sure to reconcile their income to the amounts reported to them on form 1099-K. Discrepancies will result in inquiries from the IRS.

Read the full AICPA article here.