6050W (see Notice
2009-19) of the Internal Revenue Code requires information
returns to be made for each calendar year by merchant acquiring entities
and third party settlement organizations with respect to payments made
in settlement of payment card transactions and third party payment network
transactions occurring in that calendar year. This requirement to make
information returns applies to returns for calendar years beginning after
December 31, 2010.
new section 6050W, any payment settlement entity making payment to a participating
payee in settlement of reportable payment transactions must make a return
for each calendar year to be filed with the Service, and furnish a statement
to the participating payee, setting forth the gross amount of such reportable
payment transactions, as well as the name, address, and taxpayer identification
number (TIN) of the participating payees.
1099-K, Payment Card and Third Party Network Transactions,
is a new information return that payment settlement entities will use
to report the gross amount of payment card or third party payments.
Ability (try it now)
currently includes electronic filing and plain paper filing for the entire
family of information returns and annual wage reports. Account Ability
includes Form 1099-K
and complies with IRS Sec 6050W.