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Join Date: Apr 2000
Location: Mid-life crisis, could be anywhere
Posts: 10,383
New IRS merchant reporting - form 1099-K

Anyone have any experience with this? Effective Jan 1, 2011, credit card processors are required to report your GROSS merchant deposits to the IRS. I can't for the life of me figure out why this is needed, since the GROSS and NET are two completely different numbers, and as far as I know, your GROSS numbers are not shown on your tax filings (total receipts).

Any number of things can reduce your GROSS amount:

Cost of goods
Chargebacks
Refunds
Cash back
Etc

I can understand the IRS looking for more compliance, but this doesn't make sense at all to me.
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Old 02-23-2012, 08:08 AM
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