Changes to Form 1099-MISC (1099-K)
The IRS announced changes to Form 1099-MISC. Because of this, Form 1099-MISC will now need to exclude credit or debit card and PayPal payments that previously would have been reported on a 1099-MISC. Credit card merchant account providers and PayPal, etc., will now report those payments directly to their vendors via a new Form 1099-K.
New Form 1099-MISC Update Available
Vendor payments made by credit or debit card, PayPal, etc., are no longer reported on the 1099-MISC form. These payments will be reported by the credit card company, bank, or Paypal, etc.
As a result of this reporting change, the following changes have been made in AccountEdge Pro 2012:
In Set Up 1099s and 1096 window:
- New text has been added to explain the change to 1099s.
In Review 1099s Before Printing window:
- A new field, Accounts, has been added. You will be able to select the accounts you want to be used when figuring out the total for the 1099s. The Accounts field will bring you to a Select from List in which you can deselect any bank or credit card accounts that have payments that should be excluded from the 1099 amount. Note: deselecting any account and payment will alter the 1099 amount.
- A new drill arrow has been added to the right of the 1099 Amount. This arrow will take you to the Review Vendor Payments window. You can use this arrow to drill in to see the actual payments that are included in the 1099 Amount.
- This window also now has the Selected Form for 1099, so you can select the form without going to the Advanced Filters window.
In the Review Vendor Payments window:
- This window is new and allows you to see the payments included in the 1099 amount. From this window you can exclude particular payments by de-selecting them.
1099s and Purging:
If you have purged journal entries either manually or by closing a Fiscal Year, you may receive this message if the purge included 1099 payments. The detail will be gone, but the 1099 Amount will still include the purged amounts.
AccountEdge Pro doesn't know what is purged, and if you need to see the detail, you would need to open a pre-purged backup to view the transactions associated with the vendor.
Check out the video showing the AccountEdge Pro 1099 Processing Assistant.
You can check the Acclivity blog for additional information.
IRS site for information on 1099-MISC and 1099-K: