Business Owners Shocked by New 1099K
All owners of U.S. businesses that accept credit cards recently received a 1099-K. Electronic Merchant Systems provides insight and assistance.
Alexandria, VA (PRWEB) February 04, 2012
Electronic Merchant Systems - All business owners in the U.S. that accept credit cards recently received a new tax reporting form, the 1099K. The new IRS tax form was enacted by congress to aggressively enforce tax collection. The IRS extended the time before the penalty phase applies. Beginning in 2013 bankcard processors will be required to commence backup withholding if they have do not have a matching taxpayer identification number (TIN) for the business. The backup withholding rate is 35% and the business will not have access to the funds until after tax filing the following year. According to the IRS: “If notified that your legal business name or TIN does not match IRS records, you must provide the bankcard processor with a form W9.” Through diligence, virtually all of Electronic Merchant Systems clients were matched with the IRS records meeting these new mandates. All of Electronic Merchant Systems clients were mailed their 1099-K on time. The contact phone number listed on the form (865) 845-9565 is incorrect. The correct contact number is (800) 901-7500.
Please contact Electronic Merchant Systems if any of the following events occur.
If the business form is changed (LLC to Inc. to sole proprietorship).
If the business has been sold.
Business name changes or received a new TIN number.
Electronic Merchant Systems remarks: “If you are concerned that your information is not matched with IRS records or you are being charged unwarranted fees for this process please call 800 901-7500 or visit Electronic Merchant Systems.”
Electronic Merchant Systems is one of the nation’s leading credit card processing companies. Additionally the company offers very competitive rates along with superior customer service and support. Electronic Merchant Systems remains the undisputed industry leader in quality service and customer satisfaction.
Electronic Merchant Systems sets the benchmark for quality, providing first class customer service to businesses and merchants for over 20 years.
For more information contact:
Electronic Merchant Systems
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/2/prweb9157688.htm