The IRS is providing special transitional relief to banks and other payment settlement entities required to begin reporting payment card and third-party network transactions to the IRS on new Form 1099-K.
By law, reporting is scheduled to begin in early 2012 for payment card and third-party network transactions that occurred in 2011. But under new guidance, they will not have to begin reporting until 2013. Details on the special transitional relief and reporting requirements are in these FAQs, and more information on this relief is in Notice 2011-88 and Notice 2011-89.
For more information: www.onts9.com