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[Leslie Vail]

I haven’t seen this come up anywhere, so I’ll bring it up. For some reason, I seem to have been elected by the powers that be to field all of the questions about Forms 1099 this year. I spent 7 years as a Tax Director for a very large S&L back in the 1980’s, so I’ve had my share of Form 1099 issues.
Lately, I’ve been trying to educate my clients and colleagues on the requirements under 6050W of the US Tax Code regarding Form 1099 K. The problem I’ve encountered is that if a company uses a credit card to pay a 1099 vendor, GP will still include the amount in the 1099 bucket of the vendor. Unfortunately, if my client uses GP’s default 1099 amounts to file the Form 1099 MISC, it is a violation of Federal law.
A recommendation has been added to Microsoft Connect for MS to correct this oversight.  Please vote for it:
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Leslie Vail
Accounting Systems Consulting, Inc.
Dallas TX
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[Diana Doane]

Thank you for shining the light on this topic.  1099 processing can be cumbersome enough without this added parsing.  I’ve voted!

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Diana Doane
Ascend Learning, LLC
Leawood KS
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[Leslie Vail]

Thank you Diane!

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Leslie Vail
Accounting Systems Consulting, Inc.
Dallas TX
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[Beat Bucher]

Leslie,
I’m not really concerned by 1099’s (as a Canadian), but since you’re the master of 1099’s, I trust you.. 🙂
Voted!

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Beat Bucher
Business Analyst, Dynamics GP MVP
Ultra-Electronics Forensic Technology Inc.
Montreal QC/Canada
+1-514-489-4267
@GP_Beat http://dyngpbeat.wordpress.com/
Montreal QC GPUG Chapter Leader
GP2013R2 / MR2012 CU14
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[Thaddeus Suter]

Only the merchant banks or corporations (e.g.Target) processing the credit card transactions and certain third-party settlement organizations making payments under a contractual agreement with multiple unrelated parties in a payment network have a reporting compliance obligation under I.R.C. Section 6050W and 1099-K.

Examples of third party processors includes:

1. a processor of transactions for certain stored-value cards that can be used at a network of places unrelated to the issuer and unrelated to each other (such as mall cards, campus cards used at non-university locations, and benefit cards used at locations unrelated to the government or organization that issues the card);

2. a franchisor that processes credit card transactions for its independently owned franchised stores;

3. a processor of payments through a health care network to unrelated providers in a self-insured arrangement for a company, where each payment transaction utilizes self-insurance funds passed through the processor

A cardholder of a credit card issuer including corporations making payments to suppliers/vendors with that issued card(s) has no 6050W obligation unless it meets the test as a “third party processor” settlement organization.

Here is a good link”
https://payable.com/taxes/1099-k-tax-basics

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Thaddeus Suter
Retus, Inc
Helotes TX
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[Leslie Vail]

Hi,
It’s not the filing of the 1099K that I’m concerned about. It’s that the company should not be filing a Form 1099 MISC for Items that are reportable under 6050W. GP doesn’t exclude amounts applied from credit card payments from the 1099 MISC.
Kind regards,
Leslie

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Leslie Vail
Accounting Systems Consulting, Inc.
Dallas TX
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