How to Prepare for form 1099-K

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Businesses with Sales over $20,000 Need to Prepare for form 1099-K

By Susan Ladika on October 17th, 2011 at 2:15 pm

Beginning with transactions made this year, income that came to you through third-party payment processors like PayPal and credit and debit card companies need to be reported to both you and the Internal Revenue Service on the new 1099-K form. The form is being implemented in an effort to prevent merchants from underreporting their income to the IRS and is applicable to all small business owners who have 200 transactions or more for the year and total at least $20,000 from a particular payment processor. .

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