Potential Square 1099K Issues

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jcm71

jcm71

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Joined
May 5, 2011
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Chattanooga, TN
If you use a Square reader recommend you double check your 1099K form if you are eligible for one. It appears the one they sent me,included in my gross sales, the state tax I collected whenever someone made a purchase. My Square report of my net sales for last year is substantially different than what they reported to the IRS. They included taxes as income. When I called them they gave me the double talk run around, from which I surmised that they may have a nationwide problem. The rep told me they are working through their backlog and that I can expect a call from their tax folks in a couple of days.

John
 
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rixstix said:
AFAIK, 1099k has always been gross sales amount. PayPal, credit card merchant account & square.
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The issue is that they included the sales tax I collected in the gross sales amount. I send the sales tax to the state every month and it is not income.
 
It's been that way forever. ST is part of the gross amount processed & is just a deduction somewhere so it works out in the wash. It was never a problem for my CPA in 20+ years.

https://www.irs.gov/businesses/unde...ded on the,amount of all payment transactions.

What is included on the Form 1099-K?

Whether you own a business, are self-employed, work in the gig economy or are selling personal items, Form 1099-K includes the gross amount of all payment transactions.

Good luck arguing the matter.
 
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