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Changes to IRS Reporting Requirements for 1099-Misc Tax Year 2011

Article ID: 2001238

Overview

Beginning with tax year 2011, the IRS requires you to exclude certain payment types you made to a 1099 vendor on Form 1099-MISC that will be included on third party payment processors such as credit card companies, PayPal etc. on forms 1099-K.

Assumptions

You need to file 1099 forms for tax year 2011 and have paid 1099 vendors/contractors using payment types other than cash or check, such as debit card, credit card or third party networking companies, like PayPal.

If you paid your 1099 recipients with only cash or check this legislation does not apply to you.

Details

If you have made payments to vendors in tax year 2011 you will only need to report certain types of transactions and exclude others. Intuit is aware of these compliance changes and working on solutions for our customers.

What is a form 1099-K?

A form that is now required for third party payment processing companies, credit card processors, PayPal, etc. to report payments that have been processed to vendors and contractors.

Note: Smal Business owners do not file a 1099-K form.

I use QuickBooks 2009, 2010, or 2011 how do I make changes so my 1099-MISC is correct?

You have two options:

I use QuickBooks 2012 how do I exclude non-reportable payments so my 1099-MISC is correct?

In December, QuickBooks 2012 released a new 1099 Wizard to help. See QuickBooks 2012 Wizard for more information.

I use QuickBooks MAC how do I exclude non-reportable payments so my 1099-MISC is correct?

For more information on the 1099-MISC changes in QuickBooks for Mac, please visit Little Square

Additional information on the new IRS requirements are available at IRS Third Party Information Center.

IRS Third Party Information Center

The IRS website has the information for the following:

Please continue to check back for additional information and updates.

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