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|| SportsShooter.com: Member Message Board
New credit card reporting law; section 6050W
Phil Hawkins, Photographer
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Fresno | ca | usa | Posted: 5:07 PM on 03.25.11 |
| ->> I am thoroughly confused by the new law that goes in to effect this year in which CC processing companies are required to file a 1099 on anyone who is paid more than 200 transactions AND $20,000 in revenue. Apparently there is pending legislation to repeal this requirement, but I can't find anything on line about it; there is a similar issue under the patient reporting act section 614, but it's just real murky to me. I would think this issue is one we would ALL be concerned about if you accept credit cards or use PayPal for your business. Anyone out there know where one can get ongoing information on this repeal effort? |
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Phil Hawkins, Photographer
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Fresno | ca | usa | Posted: 5:09 PM on 03.25.11 |
| ->> Sorry, that's 6041 not 614... |
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Mike Janes, Photographer
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Attica | NY | USA | Posted: 6:15 PM on 03.25.11 |
->> I have not heard of any repeal for this section of the bill, in fact it seemed to just replace an old section of what was on the books already. Honestly have not read all that much up on it because don't find it a problem based on the little I have seen.
However, what I saw was that if you have 200 transactions AND over $20,000 in sales via CC your processing company (Paypal for example) will send you the 1099-K form with the numbers so you have to report the amount processed, that's it. Paypal actually has a Q&A on their site somewhere with info. |
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Clark Brooks, Photo Editor, Photographer
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Phil Hawkins, Photographer
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Fresno | ca | usa | Posted: 8:36 PM on 03.25.11 |
| ->> I had heard the republicans were mounting a challenge to the law in the house, but can't find anything specific. Oh well, time will tell. |
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Jim Colburn, Photo Editor, Photographer
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McAllen | TX | USA | Posted: 10:09 AM on 03.26.11 |
->> Now Phil, lets give credit where it's due. It was a Republican that snuck that issue-a-1099-for-everything-over-$600 thing into the Health Care Act and the Obama Administration that's trying to get rid of it.
From "Tax proposals in the Obama administration’s fiscal year 2012 revenue budget" from Cadwalader Wickersham & Taft LLP
"Repeal Form 1099 Reporting Requirements on Payments to Corporations. The Patient Protection and Affordable Care Act of 2010 (i.e., the healthcare act) enacted section 6041(i), which requires taxpayers to file an IRS Form 1099, if the taxpayer makes annual payments of $600 or more in connection with a trade or business to a corporation after December 31, 2011"
http://www.lexology.com/library/detail.aspx?g=59864a41-1f01-47d0-bcd9-37b9c... |
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Mark Peters, Photographer
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Highland | IL | USA | Posted: 12:05 PM on 03.26.11 |
->> 6041 does not contain the $20,000 and 200 transactions reporting requirement. Those requirements are found in 6050W hich is described as. "A new reporting requirement, section 6050W, was added to the Code by section 3091(a) of the Housing Assistance Tax Act of 2008, Div. C of Public Law No. 110-289, 122 Stat. 2654 (the Act), enacted on July 30, 2008." http://www.irs.gov/pub/irs-news/reg-139255-08.pdf
The IRS final rule on 6050W established that if a transaction was reportable under both 6041 and 6050W, it is to only be reported under 6050W. http://edocket.access.gpo.gov/2010/pdf/2010-20200.pdf
As for Sec. 6041 and its $600 threshold, Sen. Mike Johanns, R-Neb, last July I believe filed a bill S.3578 to eliminate the expanded reporting requirements. Soon there after, Sander Levin D-MI file HR 5982 to do the same. Sorry Jim, it's a bipartisan effort - and far from Obama leading the charge. |
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Mark Peters, Photographer
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