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Madeleine's picture
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Has anyone received their 1099k forms from their cc processor? They were due in hand on Jan 31. Just wondering if anyone else has gotten them?

http://www.irs.gov/pub/irs-pdf/f1099k.pdf

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egoodell's picture
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 Hey gang, 

At the conference Chris sat through the cc info talk and we also talked to our cc processor.

There is going to be a bIIIIIIG mess with these 1099s or whatever it is the cc processors are submitting.

The easiest way they could explain one of the foul ups will be this:

Big tour company has bus routes to vacation spots. Since they don't know how many travelers until the last minute they submit $5K on a credit card to guarantee the transportation. Once they get there and know exaclty what the cost is the driver cuts a check to pay and they have the cc charge refunded.

So, according to their books they have NOT paid $5k, they have paid what the check was.

BUT the cc processor lists the charge and not the chargeback in their accounting so this will show as a descrepancy.

This is just one scenario. They predict it will take years to straighten out so as long as you are ethical in your accounting, dont worry about it.

RIki

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EmptyNest's picture
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 So let me ask you this. Say there is a big discrepancy between the CC # amounts and what you have in sales because you included packages and extras that you paid out to other vendors for say horseback riding etc. How do you avoid waving a red flag on this kind of stuff?  I just told my friend to hand it all to his accountant and let him figure it out!!!

Madeleine's picture
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catlady wrote:

 So let me ask you this. Say there is a big discrepancy between the CC # amounts and what you have in sales because you included packages and extras that you paid out to other vendors for say horseback riding etc. How do you avoid waving a red flag on this kind of stuff?  I just told my friend to hand it all to his accountant and let him figure it out!!!

It all comes out in the wash. If you have $X in revenue and $Y in expenses, it works out even with pacakges you paid out for. What is the kicker is the SALES TAX is included! Of course it is, because you run the sales tax on the cc. So, if you ONLY take cc's and you have an exhorbitant sales tax (like 14% or so) it does look 'sketchy', so somewhere there is going to have to be a line to put what your sales tax amount is.

We added up the 2 forms and were surprised until we realized, dope slap, 'sales tax!'

Proud Texan's picture
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 We received ours in two parts on the 1st and 2nd of March.    Wow, good timing.   We just had our refund deposited into our account from our tax return we filed in JANUARY!

 

gillumhouse's picture
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Got my tax form from the processor today.

Madeleine's picture
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Just called my processor and they have been granted an extension to get these out by Mar 1.

Madeleine's picture
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Checking again...has anyone received these?

gillumhouse's picture
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The last page of my monthly statement had it. I almost missed it.

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K, I think we use the same processor (First Data) and while the last page of the statment has the year end figure, it is not your 1099k.  They informed me there was problems and would go out by Mid March. 

Madeleine's picture
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What they don't seem to realize is if that form has to be filed with the taxes (and I'm not sure if it does) that means my taxes don't go out on time. (Corporate taxes are due Mar 15.) Even if it doesn't have to be filed with my taxes, it will be filed and if theIRS screws something up (as they did many times when we bought this place) then my numbers won't match (or be close to) the numbers the processor files.

(When we first bought the place, the IRS did not understand we were running a business with the same name but as a different entity. Kind of like you opening up a B&B with the same name as mine in the same state, they kept trying to file all the info under the PO's tax id number and we kept getting harassing letters saying we weren't filing on time!)

So, we will have to file for an extension in order to be sure we get these forms and they are close enough to what WE think we processed!

What I don't get is that they knew about this for over a year. How come WE, the little guys, have to file everything on time or be fined and the big guys get extensions and no fines?

Speaking of processing, not that I want to, while looking to see if the form was with my Dec or Jan statement, I came across a 'cross border fee' of $10 for a $300 charge. That's on top of the charge to dial in to process the card and the actual base rate fee. This is why I don't want furriners using credit cards here. That one room cost me about $20 just to run their credit card. With the card present! And, because they had 2 rooms, that's $40 just to get the money. The other $300 I ran as a deposit. I don't even want to find that statement.

And, there was a note at the bottom of the statement that I will be charged an additional .05% if I do not collect ALL the proper information for a business card. 'Please see back of statement for details.' This is an online statement. There IS no 'back of statement' to tell me what the heck 'proper information' means. 3rd call going in to processor today.

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 I purchased something online using paypal as the middle man and it stated clearly it was an intl company and I had to pay an additional percent to use a credit card with them.  Is it just us here in America that are the dropkicks on this issue? Everyone else charges addtl fees to use a foreign cc!

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Madeleine's picture
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Joey Bloggs wrote:

 I purchased something online using paypal as the middle man and it stated clearly it was an intl company and I had to pay an additional percent to use a credit card with them.  Is it just us here in America that are the dropkicks on this issue? Everyone else charges addtl fees to use a foreign cc!

Who is it who has it on their website that there is a 3% courtesy fee to use a cc? Just saw that recently. It is completely allowable now, whereas we used to not be able to charge extra for cc's. Not many want to be the first to do that, tho. Would a guest kick about it? The idea that they are now having to pay upfront for their miles and rewards, no longer hidden in the cost of the item?

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Madeleine wrote:
Joey Bloggs wrote:

 I purchased something online using paypal as the middle man and it stated clearly it was an intl company and I had to pay an additional percent to use a credit card with them.  Is it just us here in America that are the dropkicks on this issue? Everyone else charges addtl fees to use a foreign cc!

Who is it who has it on their website that there is a 3% courtesy fee to use a cc? Just saw that recently. It is completely allowable now, whereas we used to not be able to charge extra for cc's. Not many want to be the first to do that, tho. Would a guest kick about it? The idea that they are now having to pay upfront for their miles and rewards, no longer hidden in the cost of the item?

I recall seeing this recently as well. I wonder if we (as in merchants) ALL started having a cc fee if people would get the hint of just how much this convenience costs merchants, especially the rewards cards.  On the otherhand it also provides security for those of us that take deposits - can't begin to charge a courtesy fee when I am requiring the card to run a deposit.  - At least that is how I see it.

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gillumhouse wrote:

The last page of my monthly statement had it. I almost missed it.

I'll try this. But, my processor will give me fits every time. I kept getting an error message that the connection to the website wasn't secure, so I called them. Their voicemail took me to the same page I was having trouble with. FInally talked to a rep and she told me the website on their VM was wrong.

2 things...they never told me it changed and they never changed the help feature on their own VM!

gillumhouse's picture
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I get a paper statement.

Tom
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We got one, too.  They were supposed to be required for all merchant card service payments and were supposed to go on Schedule C Profit or Loss from Business Part I, line 1a BUT for 2011 forget it, just enter zero.  Apparently the providers couldn't get their act together for 2011.

Next year you will need them, and you should provide your tax ID number to your service provider or it will have to withold federal taxes.

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2 days ago.

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gillumhouse's picture
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Is this something new? I have never gotten any and have taken credit cards for years.

Madeleine's picture
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gillumhouse wrote:

Is this something new? I have never gotten any and have taken credit cards for years.

2011 is the first year the forms are required.

It was kind of neat to see the AmEx report by month. Still waiting for V/MC/D. I should ask around here and see if anyone else got them. Maybe my mail went somewhere else.

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gillumhouse wrote:

Is this something new? I have never gotten any and have taken credit cards for years.

Yes it is new, 2011

gillumhouse's picture
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Per what I read on the Link Maddie gave - you get this if you had $ 20,000 AND OVER in transaction revenue or had 200 or more transactions.

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gillumhouse wrote:

Per what I read on the Link Maddie gave - you get this if you had $ 20,000 AND OVER in transaction revenue or had 200 or more transactions.

I think it is ANY cc transactions and then the second part (the $20,000 and 200 transactions) is more for sites like eBay where it goes thru a third party payer like PayPal. So, if you accept cc's and you have a merchant account you should get 3 of these (one from Visa/MC, one from AmEx, one from Discover, if you accept all of those).

If you sell stuff on an online 'garage sale' site where you don't take the cc info, it goes thru someone else, then the $20,000/200 transactions piece comes into play.

Make sense?

We still haven't gotten the forms.

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Madeleine wrote:

gillumhouse wrote:

Per what I read on the Link Maddie gave - you get this if you had $ 20,000 AND OVER in transaction revenue or had 200 or more transactions.

I think it is ANY cc transactions and then the second part (the $20,000 and 200 transactions) is more for sites like eBay where it goes thru a third party payer like PayPal. So, if you accept cc's and you have a merchant account you should get 3 of these (one from Visa/MC, one from AmEx, one from Discover, if you accept all of those).

If you sell stuff on an online 'garage sale' site where you don't take the cc info, it goes thru someone else, then the $20,000/200 transactions piece comes into play.

Make sense?

We still haven't gotten the forms.

That is how I read it too.  

Only thing different to what you say regarding how many forms you get will depend on how your merchant account processes the CC, if they process each as 3rd party then yes you will get one from each.  How you know is how you get paid.  If you receive deposits separately expect a 1099-K from each.   (note: my processor handles all but Amex so I will get 2, one from my processor & one from Amex)

Madeleine's picture
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You're right. V/MC/D are all the same processor.

Innkeep's picture
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 Mine came today. AmEx was definitely less than both of the limits you mentioned. 

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Innkeep wrote:

 Mine came today. AmEx was definitely less than both of the limits you mentioned. 

My Amex total for the year was less as well.

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Called MY processor as I have not received the tax form, wanted to make sure it had not gotten lost (by me or the mail).  It has not been sent!  Due to a 'mailing delay' it will not be sent til late Feb or early March!  When I mentioned tax forms are due in hand by Jan. 31, all he did was apologize.

This is not typical for my merchant service at all, usually right on top of everything.  My Dec. statement does have the total for the year and I have all my statements so I can get started (I guess) and adjust if need be when it arrive, prior to filing.  Just what a pain, added to the big pain of doing this task in the first place!

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copperhead wrote:

Called MY processor as I have not received the tax form, wanted to make sure it had not gotten lost (by me or the mail).  It has not been sent!  Due to a 'mailing delay' it will not be sent til late Feb or early March!  When I mentioned tax forms are due in hand by Jan. 31, all he did was apologize.

This is not typical for my merchant service at all, usually right on top of everything.  My Dec. statement does have the total for the year and I have all my statements so I can get started (I guess) and adjust if need be when it arrive, prior to filing.  Just what a pain, added to the big pain of doing this task in the first place!

So you can't even file your taxes then...that has to be illegal. 

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Since I will inevitably be paying I will not send in until tax day, but it should be required to arrive same as W-2's.  Just wonder what (if any) the penality is to companies that do not comply in a timely manor?

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Haven't gotten mine yet.

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 actually mine just arrived today. I guess that shows in one quick snap shot your income.  I had a separate one for Amex.

I just added them, and then subtracted the 10% tax paid for sales and use and transient tax, and it is $200 difference (under) what I filed with the IRS yesterday.  Cash payments, as you can see we get virtually NONE here.

So phew! Had me worried for a moment there would be a gap one way or the other and not match up and be a red flag for an audit. I just called the account to ask if he needed these for his file, or just add to my file here (which has the payee copies of all the other 1099's).

Madeleine's picture
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I think the big issue will be if what you file is a lot less than what shows up on these forms! We expect that there will be a larger discrepancy here as we have a lot of guests who pay cash or by check. But we won't know if we don't get them!

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Madeleine wrote:

I think the big issue will be if what you file is a lot less than what shows up on these forms! We expect that there will be a larger discrepancy here as we have a lot of guests who pay cash or by check. But we won't know if we don't get them!

and pushing us further to accept only cards. keep it all in one place. this is so much, all the time, and people wonder why we lose it on the odd ocassion? 

egoodell's picture
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 We have ours for the B&B but not for the wine tour company yet.

Riki

Madeleine's picture
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Do you have a separate credit card processor for that? Or is it a separate business entity?

egoodell's picture
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Madeleine wrote:

Do you have a separate credit card processor for that? Or is it a separate business entity?

We process our charges through Tom a t Payment Transaction Solutions out of New York. He is often at the B&B Conferences.

RIki

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