Still scrambling to prepare your 2011 taxes? One thing you don't have to worry about is a lot of changes in the income tax code for businesses. It was a fairly quiet year.
The biggest news, of course, was the introduction of the 1099-K form. This must be filed by payment settlement entities, which are financial institutions that issue credit cards, as well as third-party payment processors like PayPal.
If you accept payment using one of these entities and have processed $20,000 or more and at least 200 transactions in 2011, you should have received one, or will soon, and you must file it with your taxes like you would any other 1099.
Several forms and schedules have been altered to accommodate this. Only gross amounts will be reported, so you need to have an easy way to track transactions that could affect this total (like chargebacks). We can help with this. [MORE] . . .