NYS Addresses 1099-K Filing Issue

Submitted by rkoreto on Wed, 02/15/2012 - 12:10

In a Technical Memorandum posted on Feb. 8., the New York State Department of Taxation and Finance alerted taxpayers to tax law changes regarding the due dates and filing rules for information on credit card and debit card payments.

 
These changes are designed to align state rules with the provisions of Section 6050W of the Internal Revenue Code, which require annual reports to be filed with the IRS by payment settlement entities, third-party settlement organizations, electronic payment facilitators or other third parties acting on behalf of payment settlement entities.
 
Basically, these affected entities also have to file with the state Tax Department either duplicates of all the information returns filed with the IRS or duplicates of any information returns related to New York State payees. Taxpayers must file the duplicate information returns required by New York State within 30 days of the filing of the information returns required by the IRS. The memo offers detailed information on the requirements.
 
Section 6050W led to the creation of the Form 1099-K, Merchant Card and Third-Party Payments, as described in the Federal Register and in an earlier NYSSCPA blog.

 

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