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.
You need to file 1099 forms 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.
What is a form 1099-K?
How do I exclude non-reportable payments so my 1099-MISC is correct?
I use QuickBooks MAC. How do I exclude non-reportable payments so my 1099-MISC is correct?
Third-party settlement organizations
Additional information on the new IRS requirements are available at IRS Third Party Information Center
The IRS website has the information for the following: Form 1099-K
Please continue to check back for additional information and updates.