|Shopping cart is empty.|
Introduction & Overview
The Housing and Economic Recovery Act of 2008 is a new federal regulation that requires "merchant acquiring entities" to report the gross amounts of their merchant customers' electronic payment transactions to the IRS. These new requirements will apply to transactions beginning on January 1, 2011, with required reporting and tax withholding to begin in 2012. All merchant acquiring entities must collect and verify the Tax Identification Number (TIN) and associated legal business name and address for each of their merchants on file.
Your processor is a merchant acquiring entity .
The Housing and Economic Recovery Act of 2008 created new payment transaction reporting requirements intended to help the IRS identify underreported sales. At year-end, the reporting entity (i.e. the "merchant acquiring entity") will be expected to file a Form 1099-K, an information return, with the IRS and provide a copy to you, reporting the gross amount of the credit card, debit card, gift card, and e-commerce transactions associated with your business.
New Reporting Requirements Summary
IRS Requirements for Merchants:
Requirements & Implications
The new reporting law - which was opposed by business associations, banks, and industry associations before it was ultimately signed into law - also requires the Reporting Entity to collect and verify each merchant's Tax Identification Number (TIN) and the legal business name and address associated with that number.
If you fail to provide your Processor with your TIN, or if there is a discrepancy between your TIN and the legal business name in The Reporting Entity's records and the IRS' records, you will be subjected to IRS mandated backup withholdings. This withholding provision goes into effect for transactions starting in 2012 (unlike the reporting provisions of the legislation, which apply to transactions beginning on January 1, 2011).
Sales: Mon-Fri: 8 AM - 5 PM MST
24-Hour Customer Service