New IRS regulations for merchants and processors have been imposed in the Housing and Economic Recovery Act of 2008. Beginning January 2012, all merchant processors are required to use the new 1099-K form to report the annual gross transaction volume for each merchant to the IRS.
To comply, merchant processors must have accurate records of each merchant’s legal business name and taxpayer identification number that match the merchant’s filed tax forms. Merchant processors are requesting new W-9 forms to update their databases. It is the merchant’s responsibility to ensure matching tax filing name, SSN or tax identification number and tax filing address with the processor and IRS. Beginning January 2013, merchants failing to provide accurate information to processors could be subjected to IRS backupwithholding equal to 28% of their daily transaction volume.
To update your W-9 information, please call NAMS at (888) 256-6267 today. Additional information on 1099 reporting requirements is available at www.irs.gov or by calling NAMS.