IRS Form 1099K - IRS Form 1099K Instructions
for Merchant Card and Third Party Payments

For the year 2011 and on there is a new requirement for payment settlement entities such as Paypal etc. to report merchant card payments and third party payments.

So it is broad and yet complex so if you feel that this rule about the IRS Form 1099K applies to you read the 1099K Instructions to learn more.

Currently people were selling stuff on E-bay or Amazon for example and earning a serious amount of money in some cases.

The IRS wants a cut of the action

Now the IRS has decided that they have been missing out on a lot of taxable money and it was bound to happen that they would come up with a way to get it.

They want to get a cut of the action from the profits as is their due.

The IRS Form 1099K helps them to do just that. It is a way for them to know who is earning money in ways that they previously couldn't easily track.

Not your concern

If you are involved in payments to foreign accounts etc. you should read the instructions about that as well.

The seller waits for his/her 1099K to come in from the merchant card or third party payment company and files it like a regular 1099 at tax time.

Read more abou the form 1099K at www.1099Forms.org this site is an authority site on 1099's

Read in depth about and download the 1099-MISC and 1099-MISC instructions for it.