Paypal, Square, and 1099s
Do you have any idea how Paypal and Square up deal with 1099 reporting for the IRS?
Starting in 2011, all US payment providers including PayPal will be required by the Internal Revenue Service (IRS) to report sales information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal.
If you have questions you can login to your account or call Paypal at 1-888-221-1161.
Square does not currently report to the IRS on behalf of their sellers.
Tax law requires that they provide users who process over $20,000 and 200 payments with a 1099K before January 31st, 2012. They are also required to file a corresponding tax form with the IRS.
In accordance with thier User Agreement, Section 24, they will annually report your name, address, Tax ID (or SSN), EIN (if you have one), total amount per month and per year that you transacted with Square.