Affordable 1099-K Compliance Software for Payment Settlement Entities

PRLog (Press Release) - Dec. 8, 2011 - The Internal Revenue Code also requires PSEs to file Form 1099-K with IRS either electronically or on preprinted government approved forms, the former being mandatory if the number of recipients meets or exceeds the 250 filing threshold.

Integrated Data Management Systems, Inc. (IDMS), a leading provider of W-2 and 1099 software, has made it a priority to include electronic reporting (eFile), electronic delivery (eDelivery) and plain paper filing of Form 1099-K in the 2011 version of its Account Ability Tax Form Preparation software.  Jeff Goldstein, IDMS’s president, also added “In an effort to avoid penalties pursuant to IRC §6721 and §6722, Account Ability also includes free Bulk Taxpayer Identification Number (TIN) Matching for recipients of Form 1099-K”.

PSEs that make at least one payment in settlement of reportable transactions must file Form 1099-K with respect to each participating payee for that calendar year.  However, third party settlement organizations are only required to file Form 1099-K with respect to each participating payee if both the gross amount of total reportable payment transactions to that payee exceeds $20,000 and the total number of reportable payment transactions exceeds 200.

What is a Payment Settlement Entity? What information must be reported on Form 1099-K? When are Forms 1099-K due? What constitutes the “gross amount” of reportable transactions? The answer to these and many other questions can be found in IRC Section 6050W, Frequently Asked Questions.

About IDMS (http://www.idmsinc.com):
During the past 25 years, more than 100,000 tax professionals have used Account Ability to file their information returns (1098, 1099, 3921, 3922, 5498, W-2G) and annual wage reports (W-2, W-2C).  IDMS has posted a free trial version of Account Ability on its Download page.

As its motto states: "We are known by the companies we keep." Its client roster includes: American Express; University of Notre Dame; Sunsweet; New York State Comptroller's Office; Salvation Army; Virgin Atlantic; Lockheed Martin; Northrop Grumman; D.F.A.S.; and many more.

http://www.youtube.com/watch?v=Rr5LCK2TW5Q




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Account Ability prepares information returns (1098, 1099, 3921, 3922, 5498, W2G) and annual wage reports (W2, W2C) electronically, on laser, inkjet, and generic dot matrix printers. Electronic filing and IRS TIN Matching are included at no extra charge.

Photos:
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