Potential Square 1099K Issues

Signed-In Members Don't See This Ad

jcm71

Member
Joined
May 5, 2011
Messages
1,660
Location
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
 
Signed-In Members Don't See This Ad

jcm71

Member
Joined
May 5, 2011
Messages
1,660
Location
Chattanooga, TN
AFAIK, 1099k has always been gross sales amount. PayPal, credit card merchant account & square.
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.
 

rixstix

Member
Joined
Jan 10, 2007
Messages
615
Location
Canistota, SD USA
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.
 
Last edited:
Top Bottom