B.A. Harris Blog

New Reporting Requirements for Credit and Debit Card Payments

The Housing Assistance Tax Act of 2008 enacted Internal Revenue Code section 6050W requiring organizations (banks, credit card companies, others) who settle credit/debit card transactions to report on a new 1099-K form the amounts settled with “payees”. This new rule is effective January 1, 2011. As an example, if your business collects and deposits credit card payments from customers totaling $30,000 during 2011 your credit card company is required to issue you a 1099-K reporting the amount they “settled” with you, or $30,000.


Non Tax Related Points of Interest

Happy holidays and (almost) New Year. If your holiday break is anything like mine you don’t mind getting back to the office. Don’t misinterpret the meaning of that comment however as I said “don’t mind”. This is different than “can’t wait” or “look forward to”. Hopefully everyone looks forward to the holidays like I do. Festivities, family, friends, food and drink (I don’t know a word for drink starting with “F”).



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