Form 1099 K Reporting Requirements for Payment Settlement Entities, just another way for big brother to keep up on us.

Beginning in January 2012, payment settlement entities (PSEs) are required by the Housing Assistance Tax Act of 2008 to report on Form 1099-K the following transactions:

• All payments made in settlement of payment card transactions (e.g., credit card);

• Payments in settlement of third party network transactions IF:

◦ Gross payments to a participating payee exceed $20,000; AND

◦ There are more than 200 transactions with the participating payee.

The IRS Verification Processes

We verify that tax returns are correct and complete using the following processes:

• TIN Matching Program
Use the IRS Taxpayer Identification Number (TIN) Matching Program an Internet based pre-filing e-service, to ensure the Forms 1099-K you submit has the correct TIN. The program permits you to verify the TIN furnished by the taxpayer against IRS records prior to filing information returns.

• Name Control
,The name control (a sequence of characters derived from a taxpayer’s name) and TIN on an electronically filed return must match our records.

Refer to  Reasonable Cause Regulations and Requirements for Missing and Incorrect

Name/TINs for more information.
Filing Deadlines & Procedures

Your Form 1099-Ks are due to merchants by January 31. In addition, your Form 1099-K is due to the Internal Revenue Service by the following dates:

• February 28 for paper filing. For more information review  General Instructions for Certain Information Returns.

• March 31 for electronic filing using the online FIRE System (Filing Information Returns Electronically). For more information review Publication 1220 (PDF).