1099K - New Reporting Form

The new 1099K form will begin in 2012 tax year.  This new form will be issued by businesses that process credit card and electronic payments.  This means you may be receiving a 1099K if you have an eBay account, PayPal account, or process credit cards or other electronic payments.  The processor (card company) MUST report to the IRS the amount of sales you have made through their account if the following has occured:  there are more than 200 transactions through that account and/or the total sales that you processed exceeds $20,000 for any given year.  Be sure to properly record all of your income so the amounts match the IRS at the end of year.