If you’re a Doba retailer, you probably already know there are changes to the IRS tax law that might affect your particular tax situation for the 2011 tax season and beyond. In fact, it’s likely you’ve already received the following alert from PayPal:
The Internal Revenue Service tax code has been changed and now requires all payment processors to report retailer payment volume to the U.S. government. More specifically, IRC Section 6050W of the tax code provides that all payment processors in the United States — including PayPal — are required to provide information to the IRS about certain customers who receive payments for the sales of goods or services. The aforementioned PayPal customers include those with situations in which both of the following conditions are exceeded:
- Received $20,000 in U.S. dollars in gross payment volume from the sales of goods or services after Jan. 1, 2011
- Received 200 payments for good or services after Jan. 1, 2011.
If you’re a Doba retailer who meets both of these criteria, we strongly suggest you contact your payment processor(s) to discuss this situation if they haven’t already contacted you. Additionally, you may want to discuss your tax filing options with a Certified Public Accountant (CPA) if you’ve met both of these guidelines and are issued a 1099-K by your payment processor. For more information regarding these changes, please see the following:
Manager of Fraud Prevention