Intuit Accountants News Central

IRS Change for 2011 for 1099-K Reporting Requirements

Article Post Date
March 20th 2012 by Deborah Gladden

For tax year 2011, the IRS had indicated that receipts from credit card and third party payments such as Paypal were to be reported on Form 1099-K and entered on a separate line from the other gross receipts of the entity. This reporting requirement was part of the Housing Assistance Tax Act of 2008.

However, due to 1099-K reporting issues, the IRS delayed this requirement. 2011 tax returns are not required to separate merchant card and third party payments from other gross receipts.

Here are two links to learn how input multiple 1099s: click here for Lacerte® and click here for ProSeries®.

Before deciding to delay the separate reporting requirements, the IRS had added new lines to their forms for the merchant and third party payments. The IRS government instructions indicate to enter a 0 on these lines or leave these merchant card and third party payment lines blank for 2011. All gross receipts should be reported on one line of the form for 2011.

For example, Form 1040 Schedule C enter a 0 on Line 1a where merchant card and third party network payments would be entered.  All of the Schedule C receipts not reported on a 1099-Misc should be entered on the line below the merchant card payments line.

These reporting requirement changes also apply to 1040 Schedule E and Schedule F and Forms 1065, 1120 and 1120S.

For more information about the IRS 1099-K filing requirements consult this link.

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  • About Deborah Gladden

    Deborah Gladden I am an Enrolled Agent and have been preparing taxes for many years. I have a Business Management degree from the University of Michigan. I own a small tax practice, and I work as a Development and Support Specialist for Intuit. See all of Deborah's articles…

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