Does Public Law 110-289 or, more specifically, the new IRC section 6050W, mean the end of organizations' 1099 reporting requirements for card transactions (because the new requirements for merchant acquirers basically duplicates the end-users' reporting)?
To eliminate a reporting duplication, within the proposed 6050W regulations, the IRS notes that transactions reportable under both IRC section 6041 (by end-user organizations) and 6050W (by the acquiring community) are reportable only under 6050W effective 2011. This relief for end-user organizations applies to card payments only. Finalregulations should be available from the IRS by the end of 2010.
The proposed 6050W regulations do not eliminate the requirements within IRS section 3402(t) for federal, state and large local governments to report all payments (through any payment method) and withhold 3% for each, beginning for payments made in 2012.
Members, click here to access a complete summary of the upcoming changes to 1099 reporting requirements.
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