WASHINGTON — Online processors are starting to send out a new tax form to companies that have at least 200 transactions and $20,000 in annual gross receipts.
The 1099-K, signed into law by President George W. Bush in 2008, has now been kicked into play for the tax year 2011, designed to help close the gap between what businesses and individuals owe the IRS and what they actually pay.
It is expected to bring about $9.5 billion into the U.S. Treasury over 10 years by taxing revenue flowing through electronic networks.
The IRS estimates that 53 million forms will be issued by processors, including those that facilitate online adult third-party and merchant account transactions.
