New IRS Reporting Requirements
Introduction & Overview
The Housing & Economic Recovery Act of 2008 and IRS Code Section 6050W set forth federal regulations requiring payment settlement entities to report the gross amounts of their merchant customers’ electronic payment transactions – including credit card, debit card, gift card and e-commerce transactions – to the Internal Revenue Service (IRS). These reports are shown on a Form 1099-K which is available online or is mailed from Elavon.
These annual reporting requirements apply to transactions beginning January 1, 2011 and mandate that reporting begin in 2012 and each year thereafter.
Click here for an important update from the IRS related to Form 1099-K.
As a result of this new legislation, Elavon is required to collect and verify the following information for each merchant:
- Your Taxpayer Identification Number (TIN)
- Your Legal Business Name
- Your Legal Business Address
- Your Business Organization Type (e.g. Corporation, LLC, Partnership, Sole Prop., etc.)
Note that Elavon has proactively been reaching out to all merchants that have mis-matched information on file with us. If you have been notified, or think you may have been notified, that your TIN or Legal Business name does not match the IRS’ records, you must provide Elavon with a Form W-9. Click here to access Form W-9.
Matching TIN & Legal Business Name Requirements
Please be advised that the TIN – which is either your Social Security Number or Employer Identification Number) and/or Legal Business Name that Elavon has on file for your business must match IRS records. If you fail to provide Elavon with your TIN, or if there is a discrepancy between your TIN and the legal business name in Elavon's records and the IRS' records, you may be subjected to an IRS mandated back-up withholding of 28 percent of your daily gross settled payments.. This withholding provision goes into effect for transactions starting in 2013 (unlike the reporting provisions of the legislation, which apply to transactions beginning January 1, 2011).
Once backup withholding begins, Elavon will not be able to refund any IRS withheld funds. You will have to work directly with the IRS to apply credit against your next year’s tax return.
IRS Requirements for Elavon:
- Elavon must collect and verify your TIN and associated legal name and address for your merchant business.
- Every January, Elavon must file a Form 1099-K information return with the IRS and provide a copy to you each tax year.
- Beginning in 2013, if your TIN/legal business name combination that was provided to Elavon does not match the information on file with the IRS, you may be subjected to IRS mandated backup withholding.
IRS Requirements for Merchants:
- You must ensure that the TIN/name combination that was provided to Elavon for payment card transactions matches the information on file with the IRS.
- When you receive a copy of the information return filed by Elavon annually, you should compare that information with your own records to validate the accuracy of the information.
Please click here and choose your country to locate the forms you will require.
Questions about your 1099-K?
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Complexity Made Easy
Our MerchantConnect site offers a Settlement Reconciliation Service (SRS) for reports and detailed information about the breakdown of your credit, debit and gift card transactions.